The adjusted trial balance of Pacific Scientific Corporation on December 31, 201
ID: 2341470 • Letter: T
Question
The adjusted trial balance of Pacific Scientific Corporation on December 31, 2017, the end of the company's fiscal year, contained the following income statement items ($ in millions): sales revenue, $2461; cost of goods sold, $1226; selling expenses, $292; general and administrative expenses, $162; interest expense, $34; and gain on sale of investments, $82. Income tax expense has not yet been accrued. The income tax rate is 40%.
Determine the amount would appear in a multi-step income statement for non-operating income (loss). Answer in dollars and cents ($ 0.00 ).
Explanation / Answer
Pacific Scientific Corporation
Income statement
For the year ended December 31, 2017
Sales revenue
2,461,000,000.00
Less: cost of goods sold
1,226,000,000.00
Gross profit
1,235,000,000.00
Less: operating expenses
Selling expenses
292,000,000.00
Administrative expenses
162,000,000.00
Total operating expenses
454,000,000.00
Operating income
781,000,000.00
Non-operating income
Interest Expense (Less)
-34,000,000.00
Dividend revenue
82,000,000.00
Total non-operating income
48,000,000.00
Income before tax
829,000,000.00
Less: tax expense @ 40%
331,600,000.00
Net income
497,400,000.00
Pacific Scientific Corporation
Income statement
For the year ended December 31, 2017
Sales revenue
2,461,000,000.00
Less: cost of goods sold
1,226,000,000.00
Gross profit
1,235,000,000.00
Less: operating expenses
Selling expenses
292,000,000.00
Administrative expenses
162,000,000.00
Total operating expenses
454,000,000.00
Operating income
781,000,000.00
Non-operating income
Interest Expense (Less)
-34,000,000.00
Dividend revenue
82,000,000.00
Total non-operating income
48,000,000.00
Income before tax
829,000,000.00
Less: tax expense @ 40%
331,600,000.00
Net income
497,400,000.00
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