FIN 3162 Homework
Presented below is an income statement for Morton Company for the year ended
December 31, 2007.
For the Year Ended December 31, 2007
Costs and expenses:
Cost of goods sold
Selling, general, and administrative expenses
Total costs and expenses
Income before income taxes
"Selling, general, and administrative expenses" included a usual but infrequent charge
of $7,000 due to a loss on the sale of investments.
"Other, net" consisted of interest expense, $10,000, and an extraordinary loss of
$10,000 before taxes due to earthquake damage. If the extraordinary loss had not
occurred, income taxes for 2007 would have been $24,000 instead of $21,000.
Morton had 20,000 shares of common stock outstanding during 2007.
Using the single-step format, prepare a corrected income statement, including the
appropriate per share disclosures.
—Income statement and retained earnings statement.
Malone Corporation's capital structure consists of 50,000 shares of common stock.
December 31, 2007 an analysis of the accounts and discussions with company officials