Question

Presented below is information related to Bridgeport Corp. for the year 2017.

Net sales		$1,324,900		Write-off of inventory due to obsolescence		$80,970
Cost of goods sold		788,800		Depreciation expense omitted by accident in 2016		46,300
Selling expenses		67,600		Casualty loss		51,500
Administrative expenses		54,300		Cash dividends declared		46,010
Dividend revenue		27,900		Retained earnings at December 31, 2016		1,020,840
Interest revenue		8,170		Effective tax rate of 34% on all items

Exercise 4-9 (Part Level Submission) Presented below is information related to Bridgeport Corp. for the year 2017 Net sales Cost of goods sold Selling expenses Administrative expenses Dividend revenue Interest revenue $1,324,900 788,800 67,600 54,300 27,900 8,170 Write-off of inventory due to obsolescence Depreciation expense omitted by accident in 2016 Casualty loss Cash dividends declared Retained earnings at December 31, 2016 Effective tax rate of 34% on all items $80,970 46,300 51,500 46,010 1,020,840 Your answer is partially correct. Try again Prepare a multiple-step income statement for 2017. Assume that 62,230 shares of common stock are outstanding. (Round earnings per s BRIDGEPORT CORP Income Statement For the Year Ended December 31, 2017 Revenue Net Sales 1,324,900

Answer 1

BRIDGEPORT CORP.

Income statement

For the year ended December 31, 2017

Revenue
Net sales		1,324,900
Cost of goods sold		(788,800)
Gross profit/ (loss)		536,100
Operating expense
Selling expense	67,600
Administrative expenses	54,300
Total operating expenses		(121,900)
Income from operations		414,200
Other revenue and gains
Dividend revenue	27,900
Interest revenue	8,170
		36,070
		450,270
Other expenses and losses
Casualty loss	51,500
Write - off of inventory due to obsolescence	80,970
		(132,470)
Income before income tax		317,800
Income tax expense (34% x 317,800)		(108,052)
Net Income		$209,748