Question

The following information was taken from the records of Skysong Inc. for the year 2017: Income tax applicable to income from continuing operations $174,148; income tax applicable to loss on discontinued operations $28,322, and unrealized holding gain on available-for-sale securities (net of tax) $18,000.

Gain on sale of equipment		$98,100		Cash dividends declared		$160,700
Loss on discontinued operations		83,300		Retained earnings January 1, 2017		625,400
Administrative expenses		246,100		Cost of goods sold		879,200
Rent revenue		44,500		Selling expenses		289,400
Loss on write-down of inventory		65,700		Sales Revenue		1,850,000

Shares outstanding during 2017 were 105,300.

Prepare a single-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Answer 1

Answer :-

A single-step income statement are as follows:-

Particular		Amount
Sales Revenue		$1,850,000
Add:- Rent Revenue		$44,500
Total Revenue		$1,894,500
Less :- Expense
Cost of goods sold	$879,200
Selling Expense	$289,400
Administrative Expenses	$246,100
Total Expenses		$1,414,700
Income from operations (Total Revenue - Total Expenses )		$479,800
Add :- Other revenues and gains -
Gain on sale of equipment		$98,100
Less :- Other expenses and losses -
Loss on write-down of inventory		$65,700
Income from continuing operations before income taxes ( $479,800 + $98,100 - $65,700)		$512,200
Less :- Income taxes		$174,148
Income from continuing operations		$338,052
Discontinued operations -
Loss on discontinued operations	$83,300
Less :- Income tax at loss on discontinued operation	$28,332
		$54,968
Net Income ( Income from continuing operations - Discontinued operations)		$283,084
Per share of common stock:
Income from continuing operations (income from continuing operations /share outstanding = $338,052 / 105,300)		$3.21
Loss on discontinued operations, net of tax($54,968 /105,300)		$0.52
Net Income ($283,084/105,300)		$2.69