Question

Question 12 of 46 -11 Current Attempt in Progress Sheffield Corporation had net sales of $4,970,000 and interest revenue of $90,000 during 2017. Expenses for 2017 were cost of goods sold $2,940,000; selling expenses $416,000; administrative expenses $540,000; and interest expense $24,000. Sheffield's tax rate is 40%. The corporation had 520,000 shares of common stock authorized and 52,000 shares issued and outstanding during 2017. Prepare a single-step income statement for the year ended December 31, 2017. (Round earnings per share to 2 decimal places, e.g. 1.48.) SHEFFIELD CORPORATION Income Statement $

Answer 1

Answer

SHEFFIELD CORPORATION
Income Statement
For the Years Ending [Dec 31, 2017]
Particulars	Amount
Revenue
	Sales revenue	$49,70,000.00
	(Less sales returns and allowances)	$0.00
	Interest revenue	$90,000.00
Total Revenues		$50,60,000.00
Expenses
	Cost of goods sold	$29,40,000.00
	Selling Expenses	$4,16,000.00
	Administrative Expenses	$5,40,000.00
	Interest expense	$24,000.00
Total Expenses		$39,20,000.00
	Net Income Before Taxes	$11,40,000.00
	Income tax expense @40%	$4,56,000.00
Net Income		$6,84,000.00

Calculation of Earning Per Share(EPS):

EPS = (Net Income - Preffered Dividend) / Weighted average number of shares

EPS = ($6,84,000 - $0) / 52000

EPS = $13.15 per share