Question

The financial records of Blue Inc. were destroyed by fire at the end of 2020. Fortunately, the controller had kept certain statistical data related to the income statement as follows.

1.		The beginning merchandise inventory was $82,800 and decreased 20% during the current year.
2.		Sales discounts amount to $17,000.
3.		16,184 shares of common stock were outstanding for the entire year.
4.		Interest expense was $19,600.
5.		The income tax rate is 30%.
6.		Cost of goods sold amounts to $420,000.
7.		Administrative expenses are 20% of cost of goods sold but only 8% of gross sales.
8.		Four-fifths of the operating expenses relate to sales activities.

From the foregoing information prepare an income statement for the year 2020 in single-step form. (Round earnings per share to 2 decimal places, e.g. 1.48.)
BLUE INC. . Income Statement $ $ 8

Answer 1

BLUE INC.
Income Statement
For the year ended 2020
Revenue
Sales Revenue	10,50,000
Total Revenue		10,50,000
Expensese
Cost of Goods Sold	420,000
Administrative Expenses	84,000
Sales Discount	17,000
Interest Expense	19,600
Total Expenses		540,600
Income Before Tax		509,400
Income Tax Expenses ( 509400*30% )		152,820
Net Income		356,580
Earning Per Share ( 356,580/16184)		22.03

Administrative expenses = 20% of $420000 = $84000
8% of sales = $84000
Sales = $1050,000