P1 I Foundations of Financial Accounting Multiple-Step Income Statement Using th

Question

P1 I Foundations of Financial Accounting Multiple-Step Income Statement Using the following information, prepare a multiple-step income statement Cost of goods sold Interest expense e 4-8 8,000 Accrued wages payable Selling and administrative expense Cash Sales 900 1,000 600 13,000 Dividends Retained earnings (beginning) Income tax expense 320 500 700 1,000 tice 4-9 Computation of Gross Profit Percentage Refer to the IBM information in Exhibit 4-5. Compute the overall gross profit percentage for 2009, 2010, and 2011. Income from Continuing Operations Refer to the 1BM information in Exhibit 4-5. Compute income from continuing operations as a percentage of total revenue for 2009, 2010, and 2011. actice 4-10 ractice 4-11 Computation of Income from Continuing Operations Use the following information to compute income from continuing operations. Assume that the income tax rate on all items is 40%. Cost of goods sold Interest expense Income (loss) from discontinued 5,000 Extraordinary loss S (350) 12,000 750 (1,500) Loss on sale of discontinued operations (300) 900 Sales operations Selling and administrative expense 1,450 Practice 4-12 Computation of Income from Discontinued Operations Fleming Company has two divisions, E and N. Both qualify as business components. In 2015, the firm de cides to dispose of the assets and liabilities of Division N it is probable that the disposal will be completed early next year. The revenues and expenses of Fleming for 2014 and 2015 are as follows: 2015 2014 Sales-E Total nontax expenses-E Sales-N 5,000 $4,600 4,100 5,100 4 500 4,400 3,500 3,900 Total nontax expenses-N During the later part of 2015, Fleming disposed of a portion of Division N and recognized a pretax losse $2.000 on the disposal. The income tax rate for Fleming Company is 30%. Prepare the 20 income statement 15 comparathe

Explanation / Answer

exercise 4-8 Income Statement: Sales revenue 13000 Less: Cost of goods sold 8000 Gross Margin 5000 Less: Operating expenses Selling and admin expense 1000 Operating income 4000 Less: Non operating expenses Interest Expenses 900 Net income before tax 3100 Less: tax 1000 Net Income after tax 2100

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