Question

Exercise 4-09 (Part Level Submission) Presented below is information related to Bonita Corp. for the year 2020. Net sales Cost of goods sold Selling expenses Administrative expenses Dividend revenue Interest revenue $1,248,000 748,800 62,400 46,080 19,200 6,720 Write-off of inventory due to obsolescence Depreciation expense omitted by accident in 2019 Casualty loss Cash dividends declared Retained earnings at December 31, 2019 Effective tax rate of 20% on all items $76,800 52,800 48,000 43,200 940,800
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Answer 1

Answer
BONITA CORP
Income Statement
For the year Ended December 31, 2020
Revenues:
Net Sales		$   1,248,000
Less: Cost of Goods Sold		$      748,800
Gross Profit		$      499,200
Operating expenses:
Selling Expenses	$     62,400
Administrative Expenses	$     46,080
Total operating expenses		$      108,480
Income from operations		$      390,720
Other Revenues and Gains:
Dividend Revenue	$     19,200
Interest Revenue	$       6,720	$        25,920
		$      416,640
Other Expenses and Losses:
Casualty Loss		$        48,000
Write-off of inventory due to obsolescence		$        76,800
Income before Income Tax		$      291,840
Income Tax Expense (291840*20%)		$        58,368
Net income		$      233,472
Earnings per share (233472/58368)		4