Multiple-Step Income Statement:
Curbstone Company
Income Statement
For the Year Ended August 31, 2019
Sales $8,595,000
Cost of merchandise sold 6,110,000
Income from operations $2,485,000
Expenses:
Selling expenses $800,000
Administrative expenses 575,000
Delivery expense 425,000
Total expenses 1,800,000
$685,000
Other expense:
Interest revenue 45,000
Gross profit $640,000
Required:
1. The income statement above contains errors. Prepare a corrected multi-step income statement.

Which of the following statements is correct? a. the managers of established, stable companies sometimes attempt to get their state legislatures to remove rules that make it more difficult for raiders to succeed with hostile takeovers. b. hostile takeovers are most likely to occur when a firm's stock is selling below its intrinsic value as a result of poor management. c. stockholders in general would be better off if managers never disclosed favorable events and therefore caused the price of the firm's stock to sell at a price below its intrinsic value. d. the efficiency of the u.s. economy would probably be increased if hostile takeovers were absolutely forbidden. e. in general, it is more in bondholders' interests than stockholders' interests for a firm to shift its investment focus away from safe, stable investments and into risky investments, especially those that primarily involve research and development. icon key question 6 of 10 b multiple choice 01-060