Question

Apps My Baker Baker College Mail O Dashboard Mail Buisness Law - FL Basic È Business Course Return to course Question 1 Partially correct Mark 0.42 out of 1,00 P Flag question Earnings per Share and Multiple-Step Income Statement The following summarized data relate to Bowden Corporation's current operations: Sales revenue $1,043,000 Cost of goods sold 630,000 Selling expenses 81,200 Administrative expenses 100,800 Loss on sale of equipment 7,000 Income tax expense 89,600 Shares of common stock Outstanding at January 1 21,000 shares Additional issued at May 1 9000 shares Additional issued at November 1 2 ,800 shares Required Prepare a multiple-step income statement for Bowden Corporation for the year. Include earnings per sh Do not use negative signs with any of your answers below. BOWDEN CORPORATION Income Statement For the Year Ended December 31 Sales Revenue $ 1.043.000 Cost of Goods Sold 630,000 Gross Profit on sales. 413.000 AwX9.

Answer 1

Sales revenue		$1,043,000
Cost of goods sold		$630,000
Gross profit on sales		$413,000
Selling expenses	$81,200
Administrative expenses	$100,800	$182,000
Operating income		$231,000
Loss on sale of equipment		$7,000
Income before taxes		$224,000
Income tax expense		$89,600
Net income		$134,400
Earnings per share of common stock		$4.89

Earnings per share of common stock = $134,400 / [21,000 + (9,000 X 8/12) + (2,800 X 2/12)] = $4.89