Grouper Corporation had net sales of $2,430,000 and interest revenue of $31,200

Question

Grouper Corporation had net sales of $2,430,000 and interest revenue of $31,200 during 2017. Expenses for 2017 were cost of goods sold $1,454,200, administrative expenses $218,700, selling expenses $291,300, and interest expense $52,700. Grouper’s tax rate is 30%. The corporation had 100,600 shares of common stock authorized and 73,460 shares issued and outstanding during 2017. Prepare a single-step income statement for the year ended December 31, 2017. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Explanation / Answer

Note : Income Tax Expense =

= [Total Revenue - ( Cost of Goods Sold+ administrative expenses+selling expenses+ interest expense) ] *30%

Income Statement Revenue: Net Sales 2,430,000 Interest Revenue 31,200 Total Revenues 2,461,200 Expenses Cost of Goods Sold 1,454,200 Administrative Expenses 218,700 Selling Expenses 291,300 Interest Expenses 52,700 Income Tax Expense 133,290 Total Expenses 2,150,190 Net Income 311,010

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