Question

Brief Exercise 4-02 Crane Corporation had net sales of $2,417,100 and interest revenue of $37,500 during 2020. Expenses for 2020 were cost of goods sold $1,452,900, administrative expenses $221,200, selling expenses $282,700, and interest expense $45,100. Crane’s tax rate is 30%. The corporation had 105,100 shares of common stock authorized and 72,270 shares issued and outstanding during 2020. Prepare a single-step income statement for the year ended December 31, 2020. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Answer 1

Single-Step Income Statement
Revenues:
Net sales	2,417,100
Interest revenue	37,500
Total revenue	2,454,600
Expenses:
Cost of good sold	-1,452,900
Administrative expense	-221,200
Selling expense	-282,700
Interest expense	-45,100
Total expense	-2,001,900
Profit before tax	$452,700
Income tax expense ( 452,700 x 30%)	-135,810
Net Income	$316,890
Earning per share ( Net Income/ Number of outstanding shares) (316,890/72,270)	$4.38

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