Question

aus.com/courses/36420/assignments/4069479 Current Attempt in Progress # B Two accountants for the form 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 Whispering Company ($000 omitted). $4.972 4,032 60,642 17,302 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 2,762 8,052 6,552 96,572 9.142 1.932 Common shares outstanding for 2017 total 40,550 (000 omitted). Prepare an income statement for the year 2017 using the multiple-step form. (Round earnings per share to 2 decimal places, eg. 1.48.) 09:02

Answer 1

Solution:

In the books of Whispering Company
Multiple Income Statement
For the year ended 2017
Net Sales		$96,572
Less: Cost of Goods Sold		$60,642
Gross profit		$35,930
Less: Operating Expense
Selling Expenses
Delivery Expense	$2,762
Sales Commission	$8,052
Depreciation	$6,552
Total Selling Expenses	$17,366
Administrative Expense
Officers Salaries	$4,972
Depreciation	$4,032
Other administrative expenses	-
Total Administrative Expenses	$9,004
Total Operating Expense		$26,370
Operating Income		$9,560
Add (Less) Non Operating Items
Rental Revenue	$17,302
Interest Expense	$1,932	$15,370
Income Before Taxes		$24,930
Income Tax Expense		$9,142
Net Income		$15,788
Shares Outstanding		40550
Earning per share		$0.39