prepare a complete multiple step income statement for thecompany (showing both g

Question

prepare a complete multiple step income statement for thecompany (showing both gross profit and income from operations).Show all computations. (set up the side captions or rows startingwith sales revenue and ending with earnings per share. rely on theamounts and percentages given to infer missing values --------------- village corporation at dec. 31, 2007 salesrevenue                70000 grossprofit                   24500 selling(distribution) expense 8000 administrativeexpense          ? pretaxincome                    12000 income taxrate                      30% shares of stock outstanding   3000 prepare a complete multiple step income statement for thecompany (showing both gross profit and income from operations).Show all computations. (set up the side captions or rows startingwith sales revenue and ending with earnings per share. rely on theamounts and percentages given to infer missing values --------------- village corporation at dec. 31, 2007 salesrevenue                70000 grossprofit                   24500 selling(distribution) expense 8000 administrativeexpense          ? pretaxincome                    12000 income taxrate                      30% shares of stock outstanding   3000

Explanation / Answer

I ncome statement

31 Dec,2007

Earning pershare   =   8400 /3000

   2.8

I ncome statement

31 Dec,2007

Sales revenue 70000 Less: Cost of goods 45500           Sold(bal.fig.) Gross Profit 24500 Less: Selling(distribution) epense 8000 16500 Administrative exp.(bal.fig.) 4500 Income fromoperation 12000 Less: Income tax 3600          (30% of12000) NETINCOME 8400 Outstanding shares 3000 Earning per share =Net Income / Outstanding shares

Earning pershare   =   8400 /3000

                            =

   2.8

            

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