Income Statement and Retained Earnings Huff Company presents the following items derived from its December 31, 2019, adjusted trial balance:  Soles (net) $124,000 Operating expenses $30,400 Interest expense 3,700 Common stock, $5 par 22,000 Cost of goods sold 66,200 Retained earnings, 1/1/2019 45,800  The tbllowing information is also available for 2019 and is not reflected in the preceding accounts: 1

Income Statement and Retained Earnings Huff Company presents the following items derived from its December 31, 2019, adjusted trial balance: 
Soles (net) $124,000 Operating expenses $30,400 Interest expense 3,700 Common stock, $5 par 22,000 Cost of goods sold 66,200 Retained earnings, 1/1/2019 45,800 
The tbllowing information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of $1.28 per share was declared and paid. 2. Land was sold at a pretax gain of $6,300. 3. Division X (a major component of the company) was sold at a pretax gain of $4,700. It had incurred a $9,500 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a $5,400 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders' equity is $90,000. Required: I. Prepare a 2019 multiple-step income statement for Huff. 2. Prepare a 2019 retained earnings statement. 3. Compute the 2019 return on common equity (Net Income 4 Average Shareholders' Equity).