In 2017, Pennington Corporation had net sales of $594,000 and cost of goods sold
ID: 2518728 • Letter: I
Question
In 2017, Pennington Corporation had net sales of $594,000 and cost of goods sold of $350,000. Operating expenses were $152,000, and interest expense was $7,500. The corporation's tax rate is 31%. The corporation declared preferred dividends of S12.000 in 2017, and its average common stockholders' equity during the r was $166,000. Prepare an income statement for Pennington Corporation INGTON CORPORATION 594000 350000 44000 152000 2000 500 S Gress Pront /(Loss Income from Operations interest Expense Income betore tcome Taxes ncome Tax Expens Net Encome/(Loss) 26195Explanation / Answer
All the data filled in the blanks is correct other than the symbol
The cost of goods sold and other expenses can be entered positively only
Income before income tax= Net sales-cogs-operating expense-interest expense-incoem tax exp
=594000-350000-152000-7500
=84500
Income tax expense=31%*84500=26195
Net income=84500-26195=58305