Question

Simple Income Statement

The following are selected items derived from Dibb Company's adjusted trial balance on December 31, 2016:

Loss on sale of land	$4,400
Cost of goods sold	$177,000
Sales (net)	$239,600
Operating expenses	$41,400

12,000 shares of common stock were outstanding the entire year.

Required:

Assuming a 30% income tax rate on all items of income, prepare a 2016 income statement for Dibb's Company using a multiple-step format. Round earnings per share computations to two decimal places.

DIBB Company
Income Statement (Multiple-Step)
For Year Ended December 31, 2016
	$
	$
	$
Other items
Income before income tax	$
	$
Components of Income	EPS
	$

Assuming a 30% income tax rate on all items of income, prepare a 2016 income statement for Dibb's Company using a single-step format. Round earnings per share computations to two decimal places.

DIBB Company
Income Statement (Single-Step)
For Year Ended December 31, 2016
Revenues
		$
Expenses
	$
Total expenses
		$
Components of Income		EPS
		$

Answer 1

Answer:

DIBB COMPANY Income Statement (Multiple-step) For the Year Ended December 31, 2016
Sales (net)	239,600
Cost of goods sold	177,000
Gross profit	62,600
Operating Expenses	41,400
Operating Income	21,200
Other Items:
Loss on sale of Land	(4,400)
Income Before income Tax	16,800
Income Tax Expense	5,040
Net Income	11,760
No of Outstanding Shares	12000
Earnings per share	0.98

DIBB COMPANY Income Statement (Single-step) For the Year Ended December 31, 2016
Revenues:
Sales (net)		239,600
Expenses:
Cost of goods sold	177,000
Operating Expenses	41,400
Loss on sale of Land	4400
Income Tax Expense	5,040
Total Expenses		227,840
Net Income		11,760
No of Outstanding Shares		12,000
Earnings per share		0.98