Whispering Winds Corporation had net sales revenue of $11,992,500 and investment

Question

Whispering Winds Corporation had net sales revenue of $11,992,500 and investment revenue of $465,350 for the year ended December 31, 2017. Other items pertaining to 2017 were as follows:

Whispering Winds has 100,000 common shares outstanding throughout the year.

A) Prepare a single-step income statement showing expenses by nature. Include calculation of EPS. (Round per share answer to 2 decimal places, e.g. 52.72.)

Cost of merchandise sold $9,450,500 Salaries and wages 754,400 Advertising and promotion 258,300 Entertainment 159,900 Selling expenses 1,172,600 Salaries and wages 615,000 Rent 207,050 Utilities 90,200 Administrative expenses 912,250 Increase in value of company reputation 151,700 Unrealized gain on value of patents 73,800 Interest expense 328,000 Income tax expense 165,900

Explanation / Answer

Explanation:

EPS = net income/no. of shares outstanding = 428,600/100,000 = 4.29

(Note: The increase in value of the company reputation and the unrealized gain on the value of patents are not reported. )

Revenue and gains: Sales 11,992,500.00 Investment revenue 465,350.00 Total revenues and gains 12,457,850.00 Expenses and losses: Cost of goods sold 9,450,500.00 Total selling expenses 1,172,600.00 Total administrative expenses 912,250.00 Interest expense 328,000.00 Income tax expense 165,900.00 12,029,250.00 Net income 428,600.00 EPS 4.29

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