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The adjusted trial balance of Pacific Scientific Corporation on December 31, 2021, the end of the...

The adjusted trial balance of Pacific Scientific Corporation on December 31, 2021, the end of the company's fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,105; cost of goods sold, $1,250; selling expense, $120; general and administrative expense, $110; interest expense, $35; and gain on sale of investments, $50. Income tax expense has not yet been recorded. The income tax rate is 25%.

Prepare a multiple-step income statement for 2021. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

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Expert Solution

Pacific Scientific Corporation
Multistep Income Statement
For the year ended December 31, 2021
Net Sales         2,105
Cost of goods sold      (1,250)
Gross Profit            855
Operating Expense
Selling expense          (120)
General and adin exp          (110)
Total Operating Expense          (230)
Operating Income            625
Non Operating items
    Interest expense            (35)
    Gain on sale of investent               50
INCOME before tax            640
Less: TAX EXPENSE          (160)
Net Income            480

ekkarill92 answered 1 year ago
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