Question

The financial records of Martinez Inc. were destroyed by fire at the end of 2020. Fortunately, the controller had kept the following statistical data related to the income statement:

1.		The beginning merchandise inventory was $84,000 and it decreased by 20% during the current year.
2.		There were 10,000 common shares outstanding for the entire year.
3.		Interest expense was $24,000.
4.		The income tax rate was 30%.
5.		Cost of goods sold amounted to $400,000.
6.		Administrative expenses were 20% of cost of goods sold but only 5% of gross sales.
7.		Selling expenses were four fifths of cost of goods sold.

Prepare a single-step income statement for the year ended December 31, 2020, including calculation of EPS. Expenses should be shown by function. (Round per share answer to 2 decimal places, e.g. 52.75.)

Answer 1