Question

TamariskCorporation had net sales of $2,422,100and interest revenue of $40,200during 2020. Expenses for 2020 were cost of goods sold $1,453,500, administrative expenses $220,100, selling expenses $291,900, and interest expense $53,400.Tamarisk’s tax rate is30%. The corporation had100,200shares of common stock authorized and71,770shares issued and outstanding during 2020. Prepare a condensed multiple-step income statement forTamariskCorporation?

Answer 1

The condensed multiple-step income statement for Tamarisk Corporation for 2020 showed a net income of $310,380 and earnings per share of $4.32. The calculation took into account the company's gross revenue, expenses, and a 30% tax rate.

Step-by-step explanation:

Tamarisk Corporation Income Statement (2020)

Net Sales: $2,422,100

+ Interest Revenue: $40,200

Gross Revenue: $2,462,300

- Cost of Goods Sold: $1,453,500

Gross Profit: $1,008,800

- Administrative Expenses: $220,100

- Selling Expenses: $291,900

Operating Income: $496,800

- Interest Expense: $53,400

Income Before Taxes: $443,400

- Taxes (30%): $133,020

Net Income: $310,380

Number of Shares Issued and Outstanding: 71,770

Earnings Per Share (EPS): $4.32