Question

Nedt Question 5 View Policies Current Attempt in Progress -11 The financial records of Blossom Inc. were destroyed by fire at the end of 2020. Fortunately, the controller had kept certain statistical data related to the income statement as follows. 1. The beginning merchandise Inventory was $101,200 and decreased 20% during the current year. 2. Sales discounts amount to $19,380. 3. 27,902 shares of common stock were outstanding for the entire year. 4. Interest expense was $21,600. 5. The Income tax rate is 30% 6. Cost of goods sold amounts to $640,000. 7. Administrative expenses are 20% of cost of goods sold but only 8% of gross sales. 8. Four-fifths of the operating expenses relate to sales activities From the foregoing Information prepare an income statement for the year 2020 in single-step form. (Round earnings per share to 2 decimal places, 1.48.) BLOSSOM INC. Income Statement Show All X

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prepare an income statement

Answer 1

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note the common stock outstanding are given but there is no disclosure of any dividend rate or payment on it. Therefore, this particular information has no role to play in the preparation of the income statement.
AAAAA Income Statement Blossom Inc. For the year ending 2020 Particulars Amount 19) N.Sales (1) 2240,000 Less: cost of Goods sold 640,000 Gross Profit (A) 1600,000 operating Expenses Selling Expence (2) 512,000 Aduun Expense (3) 128,000 Tolal operating Expense (B) 640,000 operating Income 960,000 PUUVVV

Von - AAAA Less: Operating Expense Interest Expense Income before mare Less: Tax @ 30.1 21,600 938,400 281,520 Net Income 6561880 Notes: (1) opening stock + Purchases - closing stock COGS 101200 619760 80960 GUOOOO

13) Admin Expense = 2011. COGS = 207.X CUO 000 = $128000 here &l of GP = $128000 GP = $128000 GP = $IGO0000 VUUTTUVIN Net sales - COGS = GP (sales - sale dis) - COGS = GP Sales - 19380 = 1600000 + G40000 sales = $2259380

v Neн cculu , 22430 - 14320 o = $ 22щоооо v v (²) selling Expense Чx operating expende v v Tolal bex let operating expense un их4 122 000 - 2 122 000 - 3 - 4 x 12оро аз 2$ Счоооо 30Aling Y - очоо00 = $ S2 бор