Answer:
1. Net income is $441,000; and Earnings per share (EPS) is $1.47 per share.
2. Net income is $441,000; and Earnings per share (EPS) is $1.47 per share.
Explanation:
Note: This question is not complete and the data in its are merged together. See the attached pdf file for thee complete question with the sorted data.
The explanations of the answers are provided as follows:
1. Prepare a single-step income statement for 2013, including EPS disclosures. (Round EPS answers to 2 decimal places.)
Note: See part 1 of the attached excel file for the single-step income statement.
A single-step income statement refers to an income statement that reports the revenue, expenses and the profit or loss of a company by using only one equation to determine profits.
The equation of the single-step income statement can be written as follows:
Net Income = (Revenues + Gains) - (Expenses + Losses)
In the part 1 of the excel file, we have:
Net income = $441,000
Earnings per share (EPS) = Net income / Number of common shares outstanding = $441,000 / 300,000 = $1.47 per share
2. Prepare a multiple-step income statement for 2013, including EPS disclosures. (Round EPS answers to 2 decimal places.)
Note: See part 2 of the attached excel file for the multiple-step income statement.
A multi-step income statement refers to an income statement that reports the revenue, expenses and the profit or loss of a company by using multiple equations to determine profits.
These equations are given as follows:
Gross Profit = Net Sales – Cost of Goods Sold
Operating Income = Gross Profit - Operating Expense
Net Income = Operating Income + Other income (loss)
In the part 2 of the excel file, we have:
Net income = $441,000
Earnings per share (EPS) = Net income / Number of common shares outstanding = $441,000 / 300,000 = $1.47 per share
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