Blue Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain itsmanufacturing operations. On September 15, Blue sold the wholesale operations to Rogers Company. During 2025, therewere 500,000 shares of common stock outstanding all year.(a1)Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49. List other revenues and gains beforeother Expenses and losses.) The following information is related to Blue Company for 2025.Retained earnings balance, January 1, 2025Sales revenueCost of goods soldInterest revenueSelling and administrative expensesWrite-off of goodwillIncome taxes for 2025Gain on the sale of investmentsLoss due to flood damageLoss on the disposition of the wholesale division (net of tax)Loss on operations of the wholesale division (net of tax)Dividends declared on common stockDividends declared on preferred stock$1,293,60033,000,00021,120,00092,4006,204,0001,082,4001,642,080145,200514,800580,800118,800330,000105,600

Organisations utilise a multi-step income statement as a financial document to calculate and present…

Answered: Prepare a multiple-step income…

Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49. List other revenues and gains befo other Expenses and losses.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Blue Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its
manufacturing operations. On September 15, Blue sold the wholesale operations to Rogers Company. During 2025, there
were 500,000 shares of common stock outstanding all year.
(a1)
Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49. List other revenues and gains before
other Expenses and losses.)

The following information is related to Blue Company for 2025.
Retained earnings balance, January 1, 2025
Sales revenue
Cost of goods sold
Interest revenue
Selling and administrative expenses
Write-off of goodwill
Income taxes for 2025
Gain on the sale of investments
Loss due to flood damage
Loss on the disposition of the wholesale division (net of tax)
Loss on operations of the wholesale division (net of tax)
Dividends declared on common stock
Dividends declared on preferred stock
$1,293,600
33,000,000
21,120,000
92,400
6,204,000
1,082,400
1,642,080
145,200
514,800
580,800
118,800
330,000
105,600

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