Answer:
AXEL CORPORATION
Income Statement
For the Year Ended December 31, 2021:
Sales revenue $ 592,000
Cost of goods sold (325,000 )
Gross profit $ 267,000
Operating Expenses:
Selling expense 67,000
Administrative expense 87,000 (154,000)
Operating Profit $113,000
Interest revenue 32,000
Gain on sale of investments 86,000
Profit before Interest expense $231,000
Interest expense (16,000)
Restructuring costs (55,000)
Profit before tax $160,000
Income tax expense (40,000 )
Net Income $ 120,000
Earnings per share $ 1.20
Step-by-step explanation:
a) Data and Calculations:
AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains:
Sales revenue $ 592,000
Interest revenue 32,000
Gain on sale of investments 86,000
Total revenues and gains 710,000
Expenses and losses:
Cost of goods sold $ 325,000
Selling expense 67,000
Administrative expense 87,000
Interest expense 16,000
Restructuring costs 55,000
Income tax expense 40,000
Total expenses and losses 590,000
Net Income $ 120,000
Earnings per share $ 1.20
b) Axel Corporation's Income Statement is a financial statement that shows the profitability of the corporation. It reveals how the corporation is able to convert the costs it incurred in the business into profitability for the stockholders. It is one of the key financial statements, whose result (called the bottom-line or net income or loss) is carried forward to the next accounting period.