Question

Brisky Corporation had net sales of $2,400,000 and interest revenue of $31,000 during 2017. Expenses for 2017 were cost of goods sold $1,450,000, administrative expenses $212,000, selling expenses $280,000, and interest expense $45,000. Brisky’s tax rate is 30%. The corporation had 100,000 shares of common stock authorized and 70,000 shares issued and outstanding during 2017. Prepare a condensed multiple-step income statement for Brisky Corporation. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Answer 1

Condensed multiple-step income statement for Brisky Corporation is as prepared below:

Brisky Corporation
Multi step Income Statement
For the Year Ended December 31, 2017
Particulars	Amount ($)	Amount ($)
Sales Revenue:
Net Sales Revenue		$2,400,000
Less: Cost of Goods Sold:
Cost of Goods Sold		1,450,000
Gross Profit		$950,000
Operating Expenses
Selling Expenses	280,000
Administrative Expenses	212,000
Total Operating Expenses		492,000
Operating Income		458,000
Other Incomes and Expenses:
Interest Revenue	31,000
− Interest Expense	-45,000
Net Other Incomes and Expenses		($14,000)
Net Income Before taxes		$444,000
Income tax expense (30%)		$133,200
Net Income		$310,800
Outstanding Common Shares		70,000
Earning per share 310,800/70,000		4.44