Brooklyn College of the City University of New York Accounting Department Intermediate Financial Accounting II Professor G.

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Brooklyn College of the City University of New York Accounting Department Intermediate Financial Accounting II Professor G. Vasquez Spring 2012 Page 1 of 1 Income Statement Project Information as of 12/31/2011 (pretax basis): Sales $3,200,000 Cost of Goods Sold 1,650,000 Interest Revenue 10,000 Loss from Abandonment of Plant Assets 40,000 Selling Expenses 340,000 Administrative Expenses 280,000 Cumulative Effect on Prior Years of Change from FIFO to Average Cost for Inventory Costing Purposes 50,000 Loss from Earthquake 40,000 Gain on Disposal of a Component Business 90,000 Additional Information: 1. Name of Firm: Kaitlin Industries 2. Headquarters: San Juan, Puerto Rico 3. Business: Sells dolls and action figures 4. Divisions: Two 5. Operating Year: Calendar Year 6. Tax Rate: 30% 7. Common Stock: 100,000 shares outstanding during year Requirements: (1) Prepare income statement (to be audited) and notes (if necessary). Good luck! ? ***************************************?????????????