Question

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Brief Exercise 4-3 (Algo) Multiple-step income statement (L04-1, 4-3] The adjusted trial balance of Pacific Scientific Corporation on December 31, 2021, the end of the company's fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,185; cost of goods sold, $1,410: selling expense, $200, general and administrative expense, $190; interest expense, $60; and gain on sale of investments, $155. Income tax expense has not yet been recorded. The income tax rate is 25%. Prepare a multiple-step income statement for 2021. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Answer is not complete. 2,185 155 2.030 PACIFIC SCIENTIFIC CORPORATION Income Statement For the Year Ended December 31, 2021 Sales revenue Gain on sale of investments Gross profit Operating expenses: Cost of goods sold 1410 Selling expenses 200 General and administrative expenses 190 Interest expense 60 Total operating expenses Operating income Other income (expense): 1,500 170 5 FEB

Answer 1

Answer
PACIFIC SCIENTIFIC CORPORATION
Income Statement
For the Year Ended December 31,2021
Sales revenue		$     2,185
Cost of goods sold		-$     1,410
Gross profit		$        775
Operating expenses
Selling expenses	-$     200
General & administrative	-$     190
Total operating expenses		-$        390
Operating income		$        385
Other income /expense
Gain on sale of investments	$     155
Interest expense	-$       60
Total other income , net		$          95
Income before income tax		$        480
Income tax expense (480*25 %)		$        120
Net income		$        360