Question

Multiple-Step and Single-Step Income Statements, and Statement of Comprehensive Income

Answer 1

Answer:

                     OPGENORTH COMPANY

                        Income Statement

                 For Year Ended December 31, 2016

Sales                                                                 $160,000

Cost of goods sold                                           $95,000

Gross profit                                                       $65,000

Operating expenses

Selling expense                     $14,000  

General and administrative   $17,000

expense  

Total operating expense                                   $31,000

Operating income                                               $34,000

Other items

Interest revenue                                $2,500

Loss on sale of equipment (pretax) -$2,000  

Loss from fire                                    -$8,000     -$7,500

Income before tax                                               $26,500

Income tax                                                           $7,950

Net income                                                          $18,550

Components of Income EPS

EPS =  $18550 / $7000

= $2.65

               OPGENORTH COMPANY

       Statement of Comprehensive Income

         For Year Ended December 31, 2016

Net income                                       $18,550

Other comprehensive loss  

Unrealized decrease in fair value   -$1,800

of available for sale securities          

Comprehensive income                  $16,750