Estimating Inventory and Preparing multiple-step and Single-step income

Question

Parker Company uses a perpetual inventory system. It entered into the following calendar-year 2005

purchases and sales transactions:

PROBLEM SET A

Problem 6-1A

Alternative cost flows—perpetual

P1

Date Activities Units Acquired at Cost Units Sold at Retail

Jan. 1 Beginning inventory . . . . . . . 600 units @ $44/unit

Feb. 10 Purchase . . . . . . . . . . . . . . . 200 units @ $40/unit

Mar. 13 Purchase . . . . . . . . . . . . . . . 100 units @ $20/unit

Mar. 15 Sales . . . . . . . . . . . . . . . . . . 400 units @ $75/unit

Aug. 21 Purchase . . . . . . . . . . . . . . . 160 units @ $60/unit

Sept. 5 Purchase . . . . . . . . . . . . . . . 280 units @ $48/unit

Sept. 10 Sales . . . . . . . . . . . . . . . . . . 200 units @ $75/unit

Totals . . . . . . . . . . . . . . . . . 1,340 units 600 units

Answer 1

 net sales  1300000                                            <br />
cost of good sold 780000<br />
selling expenses 65000<br />
administrative expenses 48000<br />
dividend revenue 20000<br />
interest revenue 1000<br />
write-off inventory due to obsolescence 80000<br />
depreciation expense omitted by accident in 2006           55000<br />
casually loss (extraordinary item ) before taxes  50000<br />
cash dividends declared  45000<br />
retained earnings at December 31 ,2006 effecting tax rate of 34% on all items              980000

1.what will be multiple income statement in 2007 , assume that 60000 shares of common stock are outstanding?