Question

Froblem 2 - Income Statement - The Filzinger Corporation's December 31, 2021 year-end trial balance contained the following income statement items: Account Title Debits Credits Sales revenue 6,700,000 Interest revenue 70,000 Gain on sale of investments 52,000 Cost of goods sold 4,200,000 Selling expense 350,000 General and administrative expense 948,000 Interest expense 30,000 Restructuring costs 600,000 They also had the following from a discontinued component: Gain on disposal of discontinued component 28,000 Loss from operations of discontinued component (60,000) Canton is subject to a 25% tax rate. There are 100,000 shares of common stock outstanding. Required: Prepare the December 31, 2021, income statement for Filzinger Corporation, using the format provided. Remember to show Earnings Per Share for Income from Continuing Operations, Discontinued Operations, and Net Income.

Answer 1

Please hit LIKE button if this helped. Requirement 1 $ 6,700,000 $ -4,200,000 $ 2,500,000 $ 350,000 $948,000 $ 600,000 $ -1,898,000 $ 602,000 Sales revenue Cost of goods sold Gross profit Operating expenses: Selling General and administrative Restructuring costs Total operating expenses Operating income Other income (expense): Gain on sales of investments Interest expense Interest revenue Other income (expense) Income from continuing operations before income taxes Income tax expense (25%) Income from continuing operations Discontinued operations: Income from operations of discontinued component (including gain on disposal of $28,000) Income tax expense Income on discontinued operations Net income $ 52,000 $ -30,000 $ 70,000 $ $ $ $ 92,000 694,000 - 173,500 520,500 $ -42,000 $ 10,500 $ $ -31,500 489,000 Earnings per share: Income from continuing operations Discontinued operations Net income $ $ $ 5.21 -3.15 4.89