Answer:
1. Prepare a single-step income statement for 2016, including EPS disclosures.
Green Star Corporation
Income Statement
For the Year Ended on December 31, 2016
Revenues and gains:
Sales revenue $1,300,000
Interest revenue $30,000
Gain on sale of investments $50,000
Total revenues and gains $1,380,000
Expenses and losses:
Cost of goods sold $720,000
Selling expenses $160,000
General and administrative expenses $75,000
Interest expense $40,000
Income tax expense $130,000
Total expenses and losses $1,125,000
Net income $255,000
Earnings per share $2.55
Green Star Corporation
Income Statement
For the Year Ended on December 31, 2016
Sales revenue $1,300,000
Cost of goods sold $720,000
Gross profit $580,000
Operating expenses:
Selling expenses $160,000
General and administrative expenses $75,000
Operating income $345,000
Non-operating income and expenses:
Interest revenue $30,000
Gain on sale of investments $50,000
Interest expense $40,000
Net income before taxes $385,000
Income tax expense $130,000
Net income $255,000
Earnings per share $2.55