INTERMEDIATE ACCOUNTING CACC 301-302-305) Exercise 4-17 (Part Level Submission)

Question

INTERMEDIATE ACCOUNTING CACC 301-302-305) Exercise 4-17 (Part Level Submission) The following information was taken from the records of Indigo Inc. for the year 2017: Income tax applicable to applicable to loss income from conenuing operations $177,656, Incometa 28,856, and a unrealized holding gain on availablie-for-sale securibies (net of tax) 822,100. Part Level Gain on sale of equipment $99,000 Cash dividends decianed Loss on discontinued operations Administrative expenses 84,900 Retained eanings January 1, 2017 44,000 Cost off goods soid 49,300Seling xpenses 66,200 Sales Revenue 34,900 292,100 1247,000 Lous on wrbe-down of inventory Shares outstanding during 2017 were 93,s00. Y (a) Prepare a mutiple-step income statement.(Roand earnings per share to 2 decimal places, eg. 1.48)

Explanation / Answer

INCOME STATEMENT IN MULTIPLE STEP FORM Particulars Amount Amount Sales Revenue $   17,47,000 Less : Cost of Goods Sold $     7,70,600 Gross Profit $    9,76,400 Less : Operating Expenses Selling Expenses $     2,92,100 Administrative Expenses $     2,44,000 $    5,36,100 Operating Income $    4,40,300 Non- Operarting and others Gain on sales of Equipment $         99,000 Loss on Written down of inventory $       -66,200 Rent Revenue $         49,300 Loss on discontinious operation $       -84,900 $        -2,800 Net Income before Taxes $    4,37,500 Less : IncomeTaxes From operating operations $     1,77,616 on Discontinue opearion $         28,866 $    2,06,482 Net income after Taxes or Bal. Available to Shareholers $    2,31,018 No. of shares outstanding            93,500 Earning per share = $            2.47

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