Question

Prepare the Amazing Company multi-step income statement for the year ended December 31, 2019. Include the EPS at the bottom. Also include a vertical analysis column at the right and perform a vertical analysis of the income statement. (Use percentage format with 2 decimal places.)

ACCT 2023 PROJECT 1 Amazing Company began operations on January 1, 2015, and is now in its fourth year of operations. It is a retail sales company with a large amount of online sales. The adjusted trial balance as of December 31, 2019 appears below, along with prior year balance sheet data and some additional transaction data for 2018. AMAZING COMPANY Adjusted Trial Balance 12/31/2019 Account Title Debit $ Cash Accounts Receivable Prepaid Insurance Inventory Office Equipment Machinery & Tools Accumulated Depreciation Accounts Payable Salaries Payable Sales Tax Payable Note Payable-Long Term Common Stock, $10 par Retained Earnings Dividends Sales Revenue Cost of Goods Sold Rent Expense Salaries Expense Insurance Expense Legal Fees Depreciation Expense Interest Expense Income Tax Expense 2019 Adjusted Trial Balance Debit Credit 120,000 $ 55,000 5,000 36,000 53,000 59,000 $ 24,000 12,200 2,600 2,000 23,000 240,000 38,600 10,000 240,000 142,600 20,000 48,000 11,800 9,200 8,000 1,800 3,000 582,400 $ 582,400 $ 2018 Post-Closing Trial Balance Credit 125,600 35,000 6,000 15,600 47,000 21,000 16,000 16,800 2,700 4,000 12,100 160,000 38,600 $ 250,200 250,200

Answer 1

	Amazing Company
Multi Level Income Statement for the year ended December 31, 2019
			2019
Sales			$240000		100%
Cost of Goods Sold		$142600		59.42%
Gross Profit		$97400		40.58%
Operating Expense
	Salaries		$48000		20%
	Rent Expense	$20000		8.33%
	Insurance	$11800		4.91%
Total Operating Expense	$79800		33.24
Operating Income		$17600		7.33%
Non Operating or other
	Legal Fees	$9200		3.83%
	Interest Expense	$1800		0.75%
Net Income before tax	$6600		4.58
Income Tax		$3000		1.25%
Net Income after tax	$3600		1.50%
No. of shares		24,000
EPS			$0.15
Deprication is included in COGS