Question

Grouper Corporation had net sales of $2,427,000 and interest revenue of $31,500 during 2017. Expenses for 2017 were cost of goods sold $1,461,400, administrative expenses $212,500, selling expenses $296,600, and interest expense $50,800. Grouper’s tax rate is 30%. The corporation had 104,800 shares of common stock authorized and 73,590 shares issued and outstanding during 2017. Prepare a condensed multiple-step income statement for Grouper Corporation

Answer 1

• Income Statement, as asked

Multi Step Income Statement
Net Sales		$            2,427,000.00
Cost of Goods Sold		$            1,461,400.00
Gross Profits		$                965,600.00
Operating Expenses:
Selling Expense	$                                 296,600.00
Administrative expense	$                                 212,500.00
Total Operating expense		$                509,100.00
Operating Income		$                456,500.00
Other Revenue & Expenses:
Interest Revenue	$                                   31,500.00
Interest expense	$                                 (50,800.00)	$                (19,300.00)
Net Income before Income taxes		$               437,200.00
Income tax expense [30%]		$                131,160.00
Net Income		$                306,040.00
No. of shares outstanding during 2017		73,590
Earnings per share		$                             4.16