Question

Bonita Corporation had net sales of $2,409,200 and interest revenue of $38,100 during 2020. Expenses for 2020 were cost of goods sold $1,464,600, administrative expenses $212,400, selling expenses $284,000, and interest expense $54,400. Bonita’s tax rate is 30%. The corporation had 110,000 shares of common stock authorized and 71,390 shares issued and outstanding during 2020. Prepare a condensed multiple-step income statement for Bonita Corporation.

Answer 1

net income: $ 451,010

EPS: $ 6.32 per share

Step-by-step explanation:

net sales 2,409,200

cost of good sold (1,464,600)

gross profit: 944,600

operating expenses:

selling expenses (284,000)

operating income 660,600

non operating:

interest revenue 38,100

interest expense (54,400)

non operating expense (16,300)

earning before taxes: 644,300

tax expense: 30% 193,260

net income 451,010

shares outstanding 71,390

Earning per share: 451,010/71,390 = 6,31755