Question

he following information is available for Oriol Corporation for the year ended December 31, 2020: sales revenue $750,000, other revenues and gains $88,000, operating expenses 116,000, cost of goods sold $464,000, other expenses and losses $32,500, and preferred stock dividends $43,125. The company's tax rate was 25%, and it had 45,000 shares utstanding during the entire year repare a corporate income statement. (List other revenues before other expenses.) ORIOLE CORPORATION In State

Answer 1

Ans. 1	ORIOLE CORPORATION
	Income Statement
	For the Year Ended December 31, 2020
	Particulars	Amount
	Sales revenue	$750,000
	Less: Cost of goods sold	-$464,000
	Gross margin	$286,000
	Less: Operating expenses	-$116,000
	Operating income (EBIT)	$170,000
	Add: Other revenues and gains	$88,000
	Less: Other expenses and losses	-$32,500
	Earnings before tax	$225,500
	Less: Tax ($225,500 * 25%)	-$56,375
	Net income	$169,125
	Earning per share =   (Net income - Preferred dividends) / Shares outstanding
	($169,125 - $43,125) / 45,000
	$126,000 / 45,000
	$2.80	per share