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Robin Mackey is a business major at Southern Missouri University. Robin is struggling with an accounting homework assignment to prepare an income statement for Wambaugh Inc., an imaginary firm. Robin has decided that the following should be included in this income statement:Costs of Goods SoldIncome Taxes PayableAccounts ReceivableIncome ExpenseEarnings per ShareLoss of Discontinued Operations (net of taxes)Net salesPossible loss from LawsuitAccounts PayableDividends (declared by the Board of Directors)Gain on Sale of EquipmentSalaries PayableSelling and Administrative ExpensesStock Dividends DistributableHelp Robin complete her homework assignment by answering the following questions:1. Which of the items listed should be included in Wambaugh Inc.’s income statement?2. In what order should these items appear in the income statement?3. Where will the remaining items appear in the financial statements? Will any of the amounts not be included in the actual financial statements? If so, explain.
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Robin Mackey is a business major at Southern Missouri University. Robin is struggling with an accoun...
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