Question

The adjusted trial balance of Pacific Scientific Corporation on December 31, 2021, the end of the company's fiscal year, contained the following income statemant 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%. 10 points Prepare a multiple-step income statement for 2021, (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (Le., 10,000,000 should be entered as 10).) Skipped PACIFIC SCIENTIFIC CORPORATION Income Statement eBook For the Year Ended December 31, 2021 Print Gross profit Operating experses Relerences Total operating expenses Operating income Other income (expense Total otherincome, net Income before income taxes Net income

Answer 1

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 and administrative expenses	190
Total operating expenses		-390
Operating income		385
Other income (expenses)
Gain on sale of investment	155
Interest expense	-60
Total other income, net		95
Income before income taxes		480
Income tax expense		-120
Net income		$360

Net income = $360 (millions)

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