Question

The following are selected ledger accounts of Sunland Corporation at December 31, 2020. Cash Inventory Sales revenue Unearned sales revenue Purchases Sales discounts Purchase discounts Selling expenses Accounting and legal services Insurance expense (office) Advertising expense Delivery expense Depreciation expense (office equipment) Depreciation expense (sales equipment) $210.900 609,900 4,873,500 133,380 3,176,040 38,760 30,780 78,660 37,620 27,360 61,560 106,020 54.720 41,040 Salaries and wages expense (sales) Salaries and wages expense (office) Purchase returns Sales returns and allowances Freight-in Accounts receivable Sales commissions Telephone and Internet expense (sales) Utilities expense (office) Miscellaneous office expenses Rent revenue Casualty loss (before tax) Interest expense Common stock ($10 par) $323,760 394,440 17.100 90,060 82,080 162,450 94,620 19.380 36,480 9,120 273,600 79,800 200,640 637,840 Sunland's effective tax rate on all items is 20%. A physical inventory indicates that the ending inventory is $686,000. Prepare a condensed 2020 income statement for Sunland Corporation.(Round earnings per share to 2 decimal places, eg. 1.48.) SUNLAND CORPORATION

Answer 1

SUNLAND CORPORATION Income Statement For the year ended Decemeber 31, 2020 Amount($) Amount() Net sales 4744680 Cost of goods Sold 3134140 Gross Profit 1610540 Selling Expenses 725130 Administrative Expenses 5597401 1284870 325670 Other income and expense: Rent revenue 273600 Income from operations 599270 Interest expense 200640 Income before income tax 398630 Income tax 79726 Income from continuing operations 318904 Discontinued operation: Casuality Loss 79800 Less: Applicable Income tax 159601 63840 Net income 255064 Earnings per share: Income from continuing operations 5.00 Discontinued operations, net of tax Net income 4.00

*Net Sales Sales - Sales Discounts/Returns *COGS = Beg. Inv. + (Purchases + Transportation-IN - Purchases Discounts/Returns) - Ending Inv. *Selling Exp. = Travel/Entertainment + Advertising + Transportation-OUT + Depr. Sales Equipment + Sales Salaries + Sales Commissions + Telephone Sales * Administrative Exp. = Accounting/Legal Services + Insurance Exp. Office + Depr. Office Equipment + Office Salaries + Utilities-Office + Miscellaneous Office Exp. *Shares Outstanding = Shares Capital-Ordinary ($637,840) / Par ($10)