$ Salesware.com, Incorporated, is a leading provider of enterprise software, delivered through the cloud, with a focus on customer relationship management, or CRM. The Company helps its customers to connect with their customers through cloud, mobile, social, blockchain, voice, advanced analytics, and artificial intelligence ("AI") technologies. Presented below are the items adapted from its recent income statement for the year ended January 31 (in millions, except per share amounts). Net earnings per share was $0.18, and the weighted-average shares used in the computation were 841 million. Cost of subscription and support revenues Cost of professional services and other revenues General and administrative expense Income tax expense Subscription and support revenues $3,269 Professional services and other revenues 1,162 Other income 1,716 Marketing and sales expense 699 Research and development expense 16,169 $ 1,180 367 7,942 2,778 Required: 1. Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement. 2. Which source of operating revenues produces the higher gross profit?
$ Salesware.com, Incorporated, is a leading provider of enterprise software, delivered through the cloud, with a focus on customer relationship management, or CRM. The Company helps its customers to connect with their customers through cloud, mobile, social, blockchain, voice, advanced analytics, and artificial intelligence ("AI") technologies. Presented below are the items adapted from its recent income statement for the year ended January 31 (in millions, except per share amounts). Net earnings per share was $0.18, and the weighted-average shares used in the computation were 841 million. Cost of subscription and support revenues Cost of professional services and other revenues General and administrative expense Income tax expense Subscription and support revenues $3,269 Professional services and other revenues 1,162 Other income 1,716 Marketing and sales expense 699 Research and development expense 16,169 $ 1,180 367 7,942 2,778 Required: 1. Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement. 2. Which source of operating revenues produces the higher gross profit?
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter13: Statement Of Cash Flows
Section: Chapter Questions
Problem 4MAD
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