Exercise: Single-step income statement.

Presented below is an income statement for Kinder Company for the year ended December 31,
2010.
Kinder Company
Income Statement
For the Year Ended December 31, 2010

Net sales $800,000

Costs and expenses:
Cost of goods sold 640,000
Selling, general, and administrative expenses 70,000
Other, net 20,000
Total costs and expenses 730,000
Income before income taxes 70,000
Income taxes 21,000
Net income $ 49,000

Additional information:
1. "Selling, general, and administrative expenses" included a usual but infrequent charge of
$7,000 due to a loss on the sale of investments.
2. "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 2010 would have been $24,000 instead of $21,000.
4. Kinder had 20,000 shares of common stock outstanding during 2010.

Instructions
Using the single-step format, prepare a corrected income statement, including the appropriate
per share disclosures