Plano had 50,000 shares of stock outstanding throughout the year. Income tax exp
ID: 2541998 • Letter: P
Question
Plano had 50,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 30%.
Required:
Prepare a multiple-step income statement with earnings per share disclosure. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)
Plano Co. 12/31/2018 Partial Trial Balance Data Debits Credits Sales revenue 760,000 Interest revenue 64,000 Gain on sale of investments 114,000 Cost of goods sold 540,000 Selling expenses 146,000 Interest expense 34,000 General and administrative expenses 108,000Explanation / Answer
MultiStep Income Statement Particulars Amount Sales 7,60,000.00 Cost of Goods Sold 5,40,000.00 Gross Profit 2,20,000.00 Operating Expenses: Admin Expenses 1,08,000.00 Selling Expenses 1,46,000.00 Total operating Expenses 2,54,000.00 Operating income (34,000.00) Non Operating or Other: Gain on sale of investment 1,14,000.00 Interest Revenue 64,000.00 Interest Expense (34,000.00) Total Non Operating 1,44,000.00 Net income 1,10,000.00 Tax @30% 33,000.00 Net Income after Tax 77,000.00 No of shares 50,000.00 EPS 1.54 Note: Please consider (-) sign as a bracket as the system is not taking (-) sign.