The following is summary data in the ledger of XYZ Limited on November 30, 2012.
Net sales 1,400,000
Cost of goods sold 800,000
Selling expenses 110,000
Administrative expenses 140,000
Other revenues and gains 40,000
Other expenses and losses 30,000
Your analysis reveals the following additional information that is not included in the
above data:
• The entire ceramics division was closed on September 30. The loss from
operations for this division before income tax was $150,000. The ceramics division
was sold at a pre-tax gain of $60,000.
• On June 12, a transport truck crashed into one of the company’s plants. This
resulted in an extraordinary loss of $90,000 before income tax.
• During the year, XYX Limited changed its amortization method. The cumulative
effect of the change on prior years’ net income was a decrease of $30,000 before
income tax. (Assume that amortization under the new method is correctly included
in the ledger data for the current year.)
• The income tax rate on all items is 30%.

Prepare XYZ Limited's income statement for the year ended November 30, 2012.



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