Question

Skysong Corporation had net sales of $2,406,400 and interest revenue of $40,100 during 2020. Expenses for 2020 were cost of goods sold $1,461,200, administrative expenses $220,800, selling expenses $285,300, and interest expense $53,200. Skysong's tax rate is 30%. The corporation had 104,400 shares of common stock authorized and 73,520 shares issued and outstanding during 2020. Prepare a single-step income statement for the year ended December 31, 2020. (Round earnings per share to 2 decimal places, eg. 1.48.)

Answer 1

SKYSONG CORPORATION

For the Year Ended December 31,2020

Revenues
Net Sales	$2,406,400
Interest Revenue	40,100
Total Revenue	2,446,500
Expenses
Cost of Goods Sold	1,461,200
Administrative Expense	220,800
Selling Expenses	285,300
Interest Expense	53,200
Income Tax Expense [Note 1]	127,800
Total Expenses	2,148,300
Net Income / (Loss)	$298,200
Earnings Per Share [Note 2]	$4.06

Note 1 = Income Tax Expense = (Total Revenue - Expenses excluding Income Tax Expense) * 30 %

= (2,446,500 - 1,461,200 - 220,800 - 285,300 - 53,200) * 30 %

= 127,800

Note 2 : Earnings Per Share = Net Income / Common stock outstanding

= $298,200 / 73,520 shares

= $4.06