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davelong13 · Apr 5, 2007, 09:47 AM

I need to prepare a multiple-step income statement, a statement of retained earnings, and a classified balance sheet for the year ended December 31, 2002. Here is the information I was provided.

(millions, except per share data) 2002
Accounts payable 619.0
Accounts receivable, net 741.0
Accumulated other comprehensive income
(reduction of owners' equity listed after treasury stock) (853.4)
Capital in excess of par value 49.9
Cash and cash equivalents 100.6
Cash dividends (412.6)
Common stock 103.8
Cost of goods sold 4,569.0
Current maturities of long-term debt 776.4
Income taxes (expense) 423.4
Interest expense 391.2
Inventories 603.2
Long-term debt 4,519.4
Net sales 8,304.1
Notes payable (current liability) 420.9
Other assets (long-term assets) 5,615.7
Other current assets 318.6
Other current liabilities 1,198.6
Other income (expense), net 27.4
Other liabilities (long-term liabilities) 1,789.9
Property, net 2,840.2
Retained earnings, beginning of year 1,564.7
Selling, general, and administrative expense 2,227.0
Treasury stock at cost (reduction of owners’
equity listed after retained earnings) (278.2)

CaptainForest · Apr 5, 2007, 02:01 PM

That's some very nice information.

How do YOU think you should answer this problem?

We won't just do your homework for you. You must show us you have made some sort of an attempt.

davelong13 · Apr 5, 2007, 03:42 PM

I'm not looking for an answer. I'm looking to how to set up the problem. For example, here is what I have so far for the multiple-step income statement:
Net sales 8,304.1
Cost of goods sold 4,569.0
Gross profit 12,873.1
Operating Expenses
Selling, general, and administrative expense 2,227.0
Income from Operations 10,646.1
Other revenues & gains
Other revenues, net ?
Other expenses & losses
Interest expense 391.2
Other income (expense), net 27.4
Income before income taxes
Income taxes (expense) 423.4
Net income ?

I'm not sure from the list what all goes to what category. If I could get some guidance as to what goes to what, I think I'll be able to finish the problem.