Question

Bonita Corporation had net sales of $2,409,200 and interest revenue of $38,100 during 2020. Expenses for 2020 were cost of goods sold $1,464,600, administrative expenses $212,400, selling expenses $284,000, and interest expense $54,400. Bonita’s tax rate is 30%. The corporation had 110,000 shares of common stock authorized and 71,390 shares issued and outstanding during 2020. Prepare a condensed multiple-step income statement for Bonita Corporation.

Answer 1

Answer:

net income: $ 451,010

EPS:             $           6.32 per share

Explanation:

net sales                   2,409,200

cost of good sold     (1,464,600)

gross profit:                  944,600

operating expenses:

selling expenses         (284,000)

operating income         660,600

non operating:

interest revenue              38,100

interest expense           (54,400)

non operating expense (16,300)

earning before taxes:     644,300

tax expense:  30%          193,260

net income                      451,010

shares outstanding          71,390

Earning per share: 451,010/71,390 = 6,31755