In: Accounting
The following information was taken from Egeland Ltd.’s adjusted
trial balance as at July 31, 2020:
Sales revenue | $2,777,000 | |||
Interest expense | 45,000 | |||
Cost of goods sold | 1,560,674 | |||
Utilities expense | 17,000 | |||
Depreciation expense | 216,000 | |||
Distribution expenses | 410,000 | |||
Administration expenses | 278,000 | |||
Advertising expense | 60,000 | |||
Interest revenue | 21,000 | |||
Income tax expense | 78,000 | |||
Dividends declared—Common shares | 27,000 | |||
Dividends declared—Preferred shares | 14,526 |
Prepare a single-step statement of income for the year ended
July 31, 2020.
.
.
.
Prepare a multi-step statement of income for the year ended July 31, 2020.
.
.
.
Determine Egeland’s gross margin percentage for the year. (Round answer to 1 decimal place, e.g. 52.7%.)
.
.
.
If Egeland had 88,000 common shares outstanding throughout the year, determine the company's basic earnings per share. (Round answer to 2 decimal places, e.g. 52.75.)
Egeland Ltd. | ||
Multiple Income Statement | ||
Particulars | Amount | Amount |
Sales Revenue | $2,777,000.00 | |
Less : Cost Of Goods Sold | $1,560,674.00 | |
Gross Profit | $1,216,326.00 | |
Less : Operating Expenses | ||
Utilities Expenses | $17,000.00 | |
Advertising Expense | $60,000.00 | |
Distribution Expenses | $410,000.00 | |
Administrative Expenses | $278,000.00 | |
Depreciation Expenses | $216,000.00 | $981,000.00 |
Operating Income | $235,326.00 | |
Other Income /(Loss) | ||
Interest Revenue | $21,000.00 | |
Interest Expenses | -$45,000.00 | -$24,000.00 |
Income Before Taxes | $211,326.00 | |
Less : Income taxes | $78,000.00 | |
Income After Taxes | $133,326.00 |
Egeland Ltd. | ||
Single Step Income Statement | ||
Particulars | Amount | Amount |
Revenue | ||
Sales Revenue | $2,777,000.00 | |
Interest Revenue | $21,000.00 | $2,798,000.00 |
Total Expense | ||
Cost Of Goods Sold | $1,560,674.00 | |
Utilities Expenses | $17,000.00 | |
Advertising Expense | $60,000.00 | |
Distribution Expenses | $410,000.00 | |
Administrative Expenses | $278,000.00 | |
Depreciation Expenses | $216,000.00 | |
Interest Expenses | $45,000.00 | |
Income taxes | $78,000.00 | $2,664,674.00 |
Net Income | $133,326.00 |
Gross Margin peercentage for the year= Gross Profit/ Sales |
=1216326/2777000=43.8% |
Compny EPS= Earning Available for Equity/ No. of Common Stock |
=(133326-14526)/88000=$1.35 per share |