Question

Return to Blackboard BLUS Kieso, Intermediate Accounting, 17e Help System Announcements Open Assignment CALCULATOR PRINTER VERSION Brief Exercise 4-02 ment Your answer is incorrect. 4-05 4-OZ 4-08 Brisky Corporation had net sales of $2,400,000 and interest revenue of $31,000 during 2020. Expel were cost of goods sold $1,450,000, administrative expenses $212,000, selling expenses $280,000 expense $45,000. Brisky's tax rate is 30%. The corporation had 100,000 shares of common stock a and 70,000 shares issued and outstanding during 2020. Prepare a single-step income statement for ended December 31, 2020. (Round earnings per share to 2 decimal places, e.g. 1.48.) 4.10 BRISKY CORPORATION Income Statement Part Privacy Policy I 2000-2019 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc

Answer 1

BRISKY CORPORATION

Income Statement

For the Year Ended December 31, 2020

Revenue
Net sales		$2,400,000
Interest revenue		31,000
Total revenues		2,431,000
Expenses
Cost of goods sold.	$1,450,000
Selling expenses.	280,000
Administrative expenses	212,000
Interest expense	45,000
Income tax expense (Note 1)	133,200
Total expenses		2,120,200
Net income		$310,800
Earnings per share (Note 2 )		$4.44

Note 1 :  Income tax expense ($2,431,000 – $1,450,000 – $280,000 – $212,000 – $45,000) * 30 % = $193,200

Note 2 :  Earnings per share = $310,800/ 70,000 shares = $4.44