Question

The adjusted trial balance of Pacific Scientific Corporation on December 31, 2021, the end of the company's fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,145; cost of goods sold, $1,330; selling expense, $160; general and administrative expense, $150; interest expense, $60; and gain on sale of investments, $95. Income tax expense has not yet been recorded. The income tax rate is 25%. 

Prepare a multiple-step income statement for 2021. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) 

Answer 1

PACIFIC SCIENTIFIC CORPORATION Income Statement for the yease Ended December 31, 2021 Sales Revenue $ 2145 dess cost of Goods sold $1330 Gross Profit $815 Operating Expenses Selling Expenses $ 160 General & Admin Expense - $10 - $310 Total operating Expenses $SOS operating Income other income (Expenses) Interest Expense - $60 $ 95 Gain on sale of investimet $35 Total othee income, Net $S40 income before income taxes Less Income taxes (540x25%) -$135 Net Income $405