Brisky Corporation had net sales of $2,423,300 and interest revenue of $36,500 d

Question

Brisky Corporation had net sales of $2,423,300 and interest revenue of $36,500 during 2014. Expenses for 2014 were cost of goods sold $1,467,800; administrative expenses $217,100; selling expenses $288,100; and interest expense $50,600. Brisky’s tax rate is 30%. The corporation had 107,900 shares of common stock authorized and 70,260 shares issued and outstanding during 2014. Prepare a condensed multiple-step income statement for Brisky Corporation. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Explanation / Answer

Solution.

Income Statement For the Year Ended December 31, 2014 Sales Revenue: Amount Amount Total Sales             2,423,300 Sales Returns Sales Discounts Net Sales Revenue ` Less: Cost of Goods Sold: Beginning Stock + Purchases + Freight-In Purchase Discounts Purchase Returns Ending Stock Cost of Goods Sold           (1,467,800) Gross Profit             3,891,100 Operating Expenses Selling Expenses: selling expenses           288,100 Advertising Expense           217,100 Sales Commissions Expense Administrative Expenses: Office Salaries Expense Office Rent Expense Office Supplies Expense Total Operating Expenses                 (71,000) Operating Income Other Incomes and Expenses: interest revenue              36,500 Interest Expense           (50,600) Net Other Incomes and Expenses                 (14,100) Net Income             3,806,000

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