Answer and Explanation:
The preparation of the condensed multiple-step income statement is presented below:
Net sales $2,427,500
Less: Cost of goods sold -$1,465,500
Gross profit $962,000
Less:
Selling expenses $289,300
Administrative expenses $220,600 ($509,900)
Income from operations $452,100
Other revenue and gains
Interest revenue $40,000
Other expenses and losses
Interest expense $47,900 ($7,900)
Income before income tax $444,200
Income tax expense(30%) ($133,260)
Net income $310,940
Earnings per share($310,960 ÷ 71,990 shares) $4.32
