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, e.g. 1.48.)

Answer 1

Single Step Income Statement
For the year ended December 31,2020		Amount $
Revenues
Net Sales	2,406,400
Interest Revenue	40,100
Total Revenues		2,446,500
Expenses:-
Cost of goods sold	1,461,200
Adminstrative expenses	220,800
Selling Expenses	285,300
Interest Expense	53,200
Total Expenses		2,020,500
Income Before Tax		426,000
Less: Income tax @30%		127,800
Net Income		298,200
Earnings per share	$ 4.06
(298,200 / 73,520 )