Income Statement Preparation, Calculate EPS
Revenue, expenses, and related accounts of Stackwell Enterprises Inc. for the year ended December 31, 1999, were
|
Cost of goods sold |
$135,000 |
Utilities expense |
$4,800 |
|
Depreciation expense |
12,000 |
Income tax rate |
30% |
|
Dividends declared and |
4,000 |
Earthquake loss (gross |
|
|
Advertising expense |
1,600 |
amount; assume not in |
|
|
Office wages expense |
28,000 |
an earthquake area) |
$15,000 |
|
Insurance expense |
2,400 |
Interest expense |
10,000 |
|
Gain on sale of short term |
Repairs and maintenance |
||
|
investments |
3,500 |
expense |
1,700 |
|
Commission expense |
15,000 |
Interest income |
2,000 |
|
Sales revenue |
230,000 |
Required
a. Prepare a multi step income statement similar to Exhibit 4 1 for the year ended December 31, 1999. Selling expenses include advertising and commission expense.
b. Calculate earnings per share. Assume that 100,000 shares were outstanding.