Question

Question 11 of 13 < > View Policies Current Attempt in Progress Presented below is information related to Sunland Corp., for the year 2020. Net sales Cost of goods sold Selling expenses Administrative expenses Dividend revenue Interest revenue Interest expense Write-off of goodwill due to impairment Depreciation expense omitted in 2018 Dividends declared Effect on prior years of change in accounting principle (credit) Loss from operations of discontinued component of business Gain from disposal of component of business Federal tax rate of 30% on all items $5,070,000 3,120,000 247.000 182.000 78,000 52,000 117,000 195.000 273,000 312,000 572,000 624.000 780,000 Prepare a multiple-step income statement for 2020. Assume the 200,000 shares of common stock were ou (Round earnings per share to 2 decimal places, eg. 5.25.) Sunland Corp. INCOME STATEMENT $ acer

Answer 1

Multistep income statement for the year ended 2017

Particulars	Amount($)	Amount($)
Sales		$1354900
less: cost of goods sold		($784400)
Gross profit		$570500
Operating expenses:
Selling expense	($70000)
Administrative expense	($49100)
Total operating expenses		($119100)
Total		$451400
add: Other income and gains:
Dividend revenue		$22800
Interest revenue		$7590
		$481790
less: other expenses and losses:
Inventory due to obsolescense		($82650)
Inome before extraordinary item and income tax		$399140
less: Extraordinary items:
Casualty loss		($48400)
Income before income tax		$350740
less: income tax(34%)		($119252)
Net income		$231488

Earning per share = Net income / number of shares outstanding

= $231488 / 62600 shares

= $3.7 per share.