The adjusted trial balance of Pacific Scientific Corporation on December 31, 201

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, $2284; cost of goods sold, $1328; selling expenses, $160; general and administrative expenses, $299; interest expense, $60; and gain on sale of investments, $68. Income tax expense has not yet been accrued. The income tax rate is 40%. Determine the amount would appear in a multi-step income statement for net income (loss). Answer in dollars and cents ($ 0.00 ).

Explanation / Answer

Pacific Scientific Corporation Income Statement Period ending December 31, 2017 $ in millions $ in millions Sales             2,284 Less: Cost of goods sold            (1,328) Gross income                     956 Less: Operating expenses Selling expenses                 160 General and administrative expenses                 299 Total operating expenses                   (459) Net income before interest and tax                     497 Less: Interest expenses                     (60) Income after interest before tax                     437 Add: Other income; Gain on sale of investment                       68 Income before tax                     505 Less: Income tax expenses at 40%                   (202) Net income after tax                     303

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