Multiple-step income statement for Miner Company. Cash dividends declared on common stock $ 250,000 Cost of goods sold 16,000,000 Gain on discontinued operations (pre-tax) 390,000 Other revenue 70,000 Other expenses 90,000 Retained earnings, December 31, 20XSX 980,000 Sales revenue 25,000,000 Selling and administrative expenses 4,700,000 Understatement of sales on account from 20XX (pre-tax) 420,000 Instructions - Prepare a multiple-step income statement for the year 2018 on scrap paper. Assume a 40% tax rate and that 600,000 shares of common stock were outstanding during the year. Not all items are relevant. Enter your amounts for the following items. (a) The amount reported as gross profit is (a)____________ (b) The amount reported as income from operations is (b)____________ (c) The amount reported as income before taxes is (c)____________ (d) The amount reported as income before the discontinued operations is (d)____________ (e) The amount reported as net income is (e)____________ (f) The amount per share for the discontinued operations (net of tax) is (f)____________
Multiple-step income statement for Miner Company.
|
Cash dividends declared on common stock |
$ 250,000 |
|
Cost of goods sold |
16,000,000 |
|
Gain on discontinued operations (pre-tax) |
390,000 |
|
Other revenue |
70,000 |
|
Other expenses |
90,000 |
|
|
980,000 |
|
Sales revenue |
25,000,000 |
|
Selling and administrative expenses |
4,700,000 |
|
Understatement of sales on account from 20XX (pre-tax) |
420,000 |
Instructions - Prepare a multiple-step income statement for the year 2018 on scrap paper. Assume a 40% tax rate and that 600,000 shares of common stock were outstanding during the year. Not all items are relevant. Enter your amounts for the following items.
(a) The amount reported as gross profit is (a)____________
(b) The amount reported as income from operations is (b)____________
(c) The amount reported as income before taxes is (c)____________
(d) The amount reported as income before the discontinued operations is (d)____________
(e) The amount reported as net income is (e)____________
(f) The amount per share for the discontinued operations (net of tax) is (f)____________
An income statement is prepared by the corporation to identify the progress in performance and profit earned during the year.
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