a.Prepare a multiple-step income statement for the year ended December 31, 2014, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were $100,000. (Round earnings per share to the nearest cent.) Save your calculations and enter the requested amounts below.
b.Prepare a retained earnings statement for the year ended December 31, 2014. Save your calculations and enter the requested amounts below.
c.Prepare a balance sheet in report form as of December 31, 2014. Save your calculations and enter the requested amounts below.
If required, only use the minus sign to indicate net loss before income tax, net loss, or a deficit balance in retained earnings.
| Gross profit |
$ 1,554,000 |
| Total selling expenses |
$ |
| Total administrative expenses |
$ |
| Total operating expenses |
$ |
| Income from operations |
$ |
| Net other expenses and income |
$ |
| Income tax |
$140,500 |
| Net income |
$ 329,000 |
| Earnings per common share (rounded to the nearest cent) |
$ |
| Retained earnings, January 1, 2014 |
$ 9,319,725 |
| Total current assets |
$ |
| Investment in Dream Inc. bonds |
$ 90,000 |
| Total property, plant, and equipment |
$ 11,174,000 |
| Total assets |
$ |
| Total current liabilities |
$ |
| Net long-term liabilities |
$ |
| Total liabilities |
$ |
| Total paid-in capital preferred 5% stock |
$ |
| Total paid-in capital common stock, $20 par |
$ |
| Total paid-in capital |
$ |
| Retained earnings, December 31, 2014 |
$ |
| Total stockholders' equity |
$ |