Question

Using the following information (below) complete the Income Statement. Discontinued operations Loss from operations of discontinued plastics division Gain from disposal of plastics division Pre-Tax $ (450,000) $1,150,000 Note: Common Shares Outstanding: 1,000,000 Note: Tax Expense Rate is 35% Company Name Income Statement For the Year Ended December 31, 2017 $ 10,565,100 Sales revenue Sales discounts Sales returns and allowances Net Sales COGS Gross Profit $ 10,565,100 6,250,000 $ 4,315, 100 Selling & Administrative Selling expenses Administrative expenses 650,000 257,000 907,000

Answer 1

Income statement

For the year ended December 31, 2017

Sales revenue	10,565,100
Sales discount	---
Sales return and allowances	---
Net sales		10,565,100
Cost of goods sold		6,250,000
Gross profit		4,315,100
Selling and administrative
Selling expenses	650,000
Administrative expenses	257,000	-907,000
Profit before tax		3,408,100
Income tax expense		-1,192,835
Income From continuing operation		2,215,265
Discontinued operation :
Loss from operation of discontinued plastic division (450,000 - 450,000 x 35%)		-292,500
Gain from disposal of plastic division (1,150,000 - 1,150,000 x 35%)		747,500
Net income		$6,078,365
Earning per share (Net income/Number of common share outstanding) (6,078,365/1,000,000)		$6.08

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