I have to do this problem using the SingleStep Income Statement: The financial r

Question

I have to do this problem using the SingleStep Income Statement:


The financial records of Leroi Jones Inc.were destroyed by fire at the end of 2007. Fortunately thecontroller had kept certain statistical data related to the incomestatement as presented below.

1. The beginning merchandise inventory was $92,000 and decreased20% during the current year.
2. Sales discounts amount is $17,000
3.   20,000 shares of common stock were outstanding forthe entire year.
4. Interest expense was $20,000
5.   The income tax rate is 30%
6. Cost of goods sold amounts to $500,000.
7. Administrative expenses are 20% of cost of goods sold forthe year 2007 but only 8% gross sales.
8. Four-fifths of the expenses relate to sale activities.

Now from the information provided from 1-8, Ineed to prepare a income statement in single-step form.

Thanks for any help please.. NeedASAP

Explanation / Answer

Cost of Goods Sold 500,000.00 Administrative Expenses 100,000.00 ( 500,000 * 0.20 ) Sales 1,250,000.00 ( 100,000 * 100 ) / 8 Closing Inventory 73,600.00 ( 92000 * 0.8 ) Selling Expenses 20,000.00 ( 100,000 * 0.2 ) Other Administrative expenses 80,000.00 Sales 1,250,000.00 Less : Discounts (17,000.00) Net Sales 1,233,000.00 Cost Of Goods sold 500,000.00 Administrative Expenses 80,000.00 Selling Expenses 20,000.00 Interest Expense 20,000.00 620,000.00 Net Income 613,000.00 Less : Income Tax (183,900.00) ( 613,000 * 0.3 ) Net Income afterTaxes 429,100.00 Earning PerShare 21.46 ( 429,100 / 20,000 )

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