Question

w pobarea Marriott balto. Canvas Login Kleso, Intermediate Accounting, 16e Help System Announcements CALCULATOR PRINTER VERSION BACK NEXT Exercise 4-5 (Part Level Submission) Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2017 Information related to Martinez Company ($000 omitted). $5,214 4,274 60,884 17,544 Administrative expense Officers' salaries Depreciation of office furniture and equipment Cost of goods sold Rent revenue Selling expense Delivery expense Sales commissions Depreciation of sales equipment Sales revenue Income tax Interest expense 3,004 81.294 5,794 96,814 9,384 2,174 Common shares outstanding for 2017 total 40,550 (000 omitted).

Answer 1

Martinez Company Income Statement For the Year Ended December 31, 2017 (In thousands, except earnings per share) Sales Revenue Cost of Goods sold Gross Profit 96814 60884 35930 Operating Expenses: Selling expenses: Delivery expense Sales commissions Depreciation of sales equipment Administrative expenses: Officers' salaries Depreciation of office furniture and equipment Income From Operations 3004 8294 6794 18092 5214 4274 9488 8350 Other Revenues and Gains: Rent revenue 17544 25894 Other Expenses and Losses: Interest expense Income before Income Tax Income tax Net Income Earning Per Share ( 14336 / 40550) -2174 23720 9384 14336 0.35