Preparing an Income Statement Shriver Company’s accounting system listed the following information for the company’s 2004 fiscal year (in millions):
|
Average common shares outstanding |
2.4 |
|
Cost of goods sold |
$170.30 |
|
Extraordinary gain |
18.2 |
|
Gain on sale of securities |
8.6 |
|
General and administrative expenses |
75.5 |
|
Income taxes (35% of pretax income) |
|
|
Interest expense |
12 |
|
Interest income |
5.9 |
|
Loss associated with cumulative effect of accounting change |
4 |
|
Loss from discontinued operations |
13.1 |
|
Sales of merchandise |
320.8 |
|
Selling expenses |
30.2 |
Required Prepare an income statement for Shriver Company for the year ended December 31, 2004. Assume that the tax rate of 35% applies to special items as well as ordinary income. (Hint: Discontinued operations are listed before extraordinary items, which are listed before accounting changes.)