Problem 127 Presented below is an income statement for Kinder Company for the ye
ID: 2487634 • Letter: P
Question
Problem 127 Presented below is an income statement for Kinder Company for the year ended December 31, 2014 Kinder Company Income Statement For the Year Ended December 31, 2014 Net sales Costs and expenses: $763,430 Cost of goods sold Selling, general, and administrative expenses Other, net 569,700 65,740 26,480 661,920 101,510 30,453 $71,057 Total costs and expenses Income before income taxes Income taxes Net income Additional information: "Selling, general, and administrative expenses" included a usual but infrequent charge of $6,330 due to a loss on the sale of investments "Other, net" consisted of interest expense, $10,660, and an extraordinary loss of $15,820 before taxes due to earthquake damage. If the extraordinary loss had not occurred, income taxes for 2014 would have been $35,199 instead of $30,453 Kinder had 20,000 shares of common stock outstanding during 2014 1. 2. 3. Using the single-step format, prepare a corrected income statement, including the appropriate per share disclosures. (Round earnings per share to 2 decimal places, e.g. $1.48.)Explanation / Answer
Answer:
Kinder Company Income Statement For the year ended December 31,2014 Net sales 763430 Cost and expenses: Cost of goods sold 569700 Selling,general and administrative exp 59410 Interest expense 10660 Infrequent charge—loss on sale of investments 6330 Total costs and expenses 646100 Income before taxes and extraordinary item 117330 Income taxes 35199 Income before extraordinary item 82131 Extraordinary loss Earthquake damage 15820 Less applicable taxes 4746 11074 Net income 71057 Per share of common stock Income before extraordinary item 4.11 Extraordinary loss, net of tax 0.55 Net income 3.55