Question

Prepare a multiple-step income statement for Simon Corporation for 2019 using the data provided , including...

Prepare a multiple-step income statement for Simon Corporation for 2019 using the data provided , including EPS disclosures assuming 500,000 shares of common stock were outstanding for 2019. The income tax rate is 25%.

Sales revenue : $30,000,000

General and administrative expenses : 5,400,000

Deferred revenue: 50,000

Interest expense: 18,000

Selling expenses : 800,000

Interest revenue: 16,000

Cost of goods sold: 9,000,000

Dividend revenue: 8,000

Additional Information:

The company's fiscal year end is December 31st. Income tax expense has not been determined. The following events also occurred during 2019. All transactions are material in amount unless otherwise noted.

1 -A chemical explosion caused $36,000 in uninsured damages to one of Simon's warehouses. The explosion was considered to be an unusual event.

2 -In October 2019, Simon sold its Paint division that qualified as a component of an entity for $1,600,000. The division generated "before tax income" of $360,000 from operations, from the beginning of the year through the date of disposal, and the book value of the division's assets was $700,000.

3 -$60,000 in restructuring costs were incurred in connection with corporate down-sizing.

4 -It was discovered that depreciation expense for 2018 was understated by $10,000 due to a mathematical error.

5 -Inventory that had a cost of $10,000 had become obsolete. The inventory was sold as scrap for $6,000.

6 -Simon Corporation experienced a foreign currency translation adjustment loss of $12,000.

7 -Investments were sold during the year at a loss of $3,000.

8 -Simon also had unrealized gains of $64,000 for the year on investments.

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