Question

Whispering Corporation had net sales of $2420000 and interest revenue of $40900 during 2020. Expenses for 2020 were cost of goods sold $1453900, administrative expenses $221800, selling expenses $296100, and interest expense $51900. Whispering’s tax rate is 30%. The corporation had 105200 shares of common stock authorized and 74850 shares issued and outstanding during 2020. Prepare a condensed multiple-step income statement for Whispering Corporation. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Answer 1

Multiple income statement

Net sales	2,420,000
Cost of goods sold	-1,453,900
Gross profit	966,100
Operating expenses :
Administrative expenses	-221,800
selling expenses	-296,100
Operating profit	448,200
Other revenues :
Interest revenue	40,900
Other expenses :
Interest expense	-51,900
Income before tax	437,200
Income tax expense	-131,160
Net income	$306,040
Earning per share (Net income/Number of common shares outstanding) (306,040/74,850)	$4.09

Net income = $306,040

Earning per share = $4.09

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