The adjusted trial balance of Pacific Scientific Corporation on December 31, 201

Question

The adjusted trial balance of Pacific Scientific Corporation on December 31, 2017, the end of the company's fiscal year, contained the following income statement items ($ in millions): sales revenue, $2223; cost of goods sold, $1351; selling expenses, $106; general and administrative expenses, $156; interest expense, $48; and gain on sale of investments, $36. Income tax expense has not yet been accrued. The income tax rate is 40%. Determine the amount would appear in a multi-step income statement for income(loss) before taxes. Answer in dollars and cents ($ 0.00 ).

Explanation / Answer

Pacific Scientific Corporation

Statement of earnings

Sales $2,223 Less : Cost of goods sold $1,351 Gross margin $872 Less : Operating expenses Selling expenses $106 General and administrative expenses $156 Operating income $610 Add : Other revenues and gains Gain on sale of investments $36 Less : Other expenses and losses Interest expense $48 Income from continuing operations before tax $598

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