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3.Presented below is information related to Farr Company.

Retained earnings, December 31, 2010
$650,000
Sales
1,400,000
Selling and administrative expenses
240,000
Hurricane loss (pre-tax) on plant (extraordinary item)
290,000
Cash dividends declared on common stock
33,600
Cost of goods sold
780,000
Gain resulting from computation error on depreciation charge in 2009 (pre-tax)
520,000
Other revenue
120,000
Other expenses
100,000

Instructions: Prepare (in good form) a multi-step income statement for the year 2011. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year.