Presented below is information related to Brokaw Corp. for the year 2012. Net sa

Question

Presented below is information related to Brokaw Corp. for the year 2012.

Net sales $1,313,000 Write-off of inventory due to obsolescence $83,400 Cost of goods sold 789,100 Depreciation expense omitted by accident in 2011 44,100 Selling expenses 65,600 Casualty loss (extraordinary item) before taxes 52,700 Administrative expenses 53,400 Cash dividends declared 53,800 Dividend revenue 26,300 Retained earnings at December 31, 2011 987,900 Interest revenue 7,600 Effective tax rate of 34% on all items Presented below is information related to Brokaw Corp. for the year 2012.

Net sales $1,313,000 Write-off of inventory due to obsolescence $83,400 Cost of goods sold 789,100 Depreciation expense omitted by accident in 2011 44,100 Selling expenses 65,600 Casualty loss (extraordinary item) before taxes 52,700 Administrative expenses 53,400 Cash dividends declared 53,800 Dividend revenue 26,300 Retained earnings at December 31, 2011 987,900 Interest revenue 7,600 Effective tax rate of 34% on all items Prepare a multiple-step income statement for 2012. Assume that 60,300 shares of common stock are outstanding. (Round earnings per share to 2 decimal places, e.g. $1.48.) Prepare a multiple-step income statement for 2012. Assume that 60,300 shares of common stock are outstanding. (Round earnings per share to 2 decimal places, e.g. $1.48.) Presented below is information related to Brokaw Corp. for the year 2012.

Net sales $1,313,000 Write-off of inventory due to obsolescence $83,400 Cost of goods sold 789,100 Depreciation expense omitted by accident in 2011 44,100 Selling expenses 65,600 Casualty loss (extraordinary item) before taxes 52,700 Administrative expenses 53,400 Cash dividends declared 53,800 Dividend revenue 26,300 Retained earnings at December 31, 2011 987,900 Interest revenue 7,600 Effective tax rate of 34% on all items Presented below is information related to Brokaw Corp. for the year 2012. Prepare a multiple-step income statement for 2012. Assume that 60,300 shares of common stock are outstanding.

Explanation / Answer

MULTIPLE STEP INCOME STATEMENT PARTICULAR AMOUNT AMOUNT Net Sales $1,313,000 (-) COGS $789,100 Gross Profit $523,900 Operating Expenses Selling Expenses $65,600 Admin Expenses $53,400 Total $119,000 Operating Income $404,900 Non-Operating Items Interest Revenue $26,300 Dividend Revenue $7,600 (-) Write off inventory $83,400 (-) Depreciation adjustment $44,100 (-) Casualty Loss $52,700 Total $146,300 Net Income $258,600

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.