Question

I have to do an simple-step Income statement and I'm stuck on what comes after the expense part.

Accounting, Analysis, and Principles a1-a3 SheffieldInc. provided the following information for the year 2020. Retained earnings, January 1, 2020 $ 672,000 Administrative expenses 268,800 Selling expenses 336,000 Sales revenue 2,128,000 Cash dividends declared 89,600 Cost of goods sold 952,000 Loss on discontinued operations 123,200 Rent revenue 115,024 Unrealized holding gain on available-for-sale debt securities 19,040 Income tax applicable to continuing operations 209,440 Income tax benefit applicable to loss on discontinued operations 67,760 Income tax applicable to unrealized holding gain on available-for-sale debt securities 2,240 Prepare a single-step income statement for 2020. Shares outstanding during 2020 were 100,000. (Round earnings per share to 2 decimal places, e.g. $1.48.)

Answer 1

SHEFFIELD INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
Revenues
Sales	2128000
Rent revenue	115024
Total revenues		2243024
Expenses
Cost of goods sold	952000
Selling expenses	336000
Administrative expenses	268800
Total expenses		1556800
Income from continuing operation before income tax		686224
Income tax		209440
Income from continuing operations		476784
Discontinued operations
Loss on discontinued operations	123200
Less: Applicable income tax reduction	67760	55440
Income before extraordinary items		421344
Extraordinary items:
Extraordinary gain		0
Net income		421344
Per share of common stock:
Income from continuing operations ($476784/100,000)		4.77
Loss on discontinued operations, net of tax (55440/100000)		(0.55)
Net income		4.22

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