Presented below is information related to Capital Co. for year of 2015 (1/1/2015-12/31/2015).

Income from operations of discontinued food departiment (pre-tax) $60,000

Selling and administrative expenses   640,000

Interest expenses 140,000

Net Sales 3,560,000

Loss resulting from changes in accounting principles: LIFO to average cost (pre-tax) 37,000

Dividends-Common stock 56,000

Gain resulting from correction of computation error on salaries expense in 2013 (pre-tax) 69,000

Interest revenues 260,000

Loss on disposal of discontinued food department (pre-tax) 170,000

Cost of goods sold 2,380,000

Dividends-Preferred stock 40,000

Instructions

Prepare in good form a multiple-step income statement for the year 2015 for Capital Co. Assume a 30% tax rate and that 300,000 shares of common stock were outstanding during the year.

Include an appropriate heading for the statement.

All subtotals should be titled appropriately. Also determine earnings per share based on the net income figure at the bottom of the statement (round to two decimals). That is, you don't need to show per share information for different components.

Please note, the items given above are in scrambled order and not all items should be reported on an income statement. Illustration 4-19 on textbook provides a good example of income statement. Please study the example before you do the assignment.