Question

The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2018, included the following income accounts: Debits Credits 2,700,000 Account Title Sales revenue Cost of goods sold Selling and administrative expenses Interest expense Unrealized holding gains on investment securities 1,590,000 431,000 59,000 99,000 The trial balance does not include the accrual for income taxes. Lindor's income tax rate is 30%. 1.9 million shares of common stock were outstanding throughout 2018. Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2018, including appropriate EPS disclosures. (Round EPS answer to 2 decimal places.) LINDOR CORPORATION Statement of Comprehensive Income For the Year Ended December 31, 2018 0 0 0 $ 0 Earnings per share:

Answer 1

Sales Revenue	$2,700,000
Cost of goods sold	$1,590,000
Gross Profit	$1,110,000
Operating expenses :
Selling and administrative expenses	$431,000
Operating income	$679,000
Other Income and expense :
Interest expense	$59,000
Income before income tax	$620,000
Income tax expense	$186,000
Net Income	$434,000
Other Comprehensive Income :
Unrealized holding gains on investment securities, net of tax	$99,000
Comprehensive Income	$533,000
Earnings per share :
Net income	$0.23

Working notes

Income tax expense = $620,000 * 30%

= $186,000

Earnings per share = $434,000 / 1,900,000

= $0.23