Question

The following information is available for Oriole Cerporation 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 outstanding during the entire year Prepare a corporate Income statement. (List other revenues before other expenses.) ORIOLE CORPORATION Income Statement < < < < < < <

Answer 1

Oriole Corporation Income statement for the year ended 31st December 2020 :- Particulars Amounts Sales Revenue 750,000 Less: Cost of goods sold 464,000 Gross margin 286,000 Less: Operaing expenses 116,000 Operaing Income 170,000 Add: Other revenues and gains 88,000 Less: Other expenses and losses 32,500 Income before tax 225,500 Less: Income tax @ 25% 56,375 Net Income 169,125 Earnings per share = (Net Income - Preferrence dividend)/No of outstanding shares Earnings per share = (169125-43125)/45000 Earnings per share = 126000/45000 Earnings per share - $ 2.80/.