poppazoid
Jul 9, 2008, 11:35 AM
I am having difficulty in converting the numbers into a Multi-Step Income Statement. Any help would be appreciated.
Retained Earnings, January 1, 2010 as reported 400,000
Cost of Goods Sold 896,770
Operating Expenses:
Bond Interest Expense 8,000
Administrative Expenses 35,970
Net Sales
Total Comprehensive Income
Loss on Sale of Plant Asset 10,000
Income Tax Expense 133,000
Prior Period Adjustment: Correction of Inventory overstatement (net of $4,000 tax) 20,000
Extraordinary Items:
Gain on Water Damaage Insurance claim ($15,000 gross, tax of $3,000)* compute amt
Selling Expenses 248,785
Loss from Litigation Settlement ($36,000 gross loss, $14,000 tax savings)* compute amt
Income from Continuing Operations before Tax
Loss from Disposal of a division of a business ($120,000 gross loss, $39,475 tax savings) compute amt
Discontinued Operations:
Income before Extraordinary Items
Income from Continuing Operations (after tax)
Sales 1,678,500
Other Comprehensive Income (Loss)
Less: Sales Returns and Allowances 93,450
NET INCOME
Dividend Revenue 38,000
Foreign Currenty translations gain, net of $15,000 tax 100,000
Comprehensive Income
Other Revenue/Gains:
Income from Operations
Unrealized Losses on Investment Securities, net of $5,000 tax (30,000)
Other Expenses/Losses:
Total Operating Expenses
Gross Profit
(*) Unusual and Infrequent
Here is what I have so far:
Sales Revenue: (begin below this line)
Sales 1,678,500
Less: Sales Returns and Allowances -93,450
Net Sales 1,585,050
Cost of Goods Sold -896,770
GROSS PROFIT 688,280
Operating Expenses:
Bond Interest Expense 8,000
Administrative Expense 35,970
Selling Expense 248,785
Total Operating Expenses 292,755
Income from Operations 395,525
Other Revenues/Gains:
Gain on Water Damage Insurance Claim 18,000
Other Expenses/Losses:
Loss from Litigation Settlement -22,000
Loss from Disposal of a division of a business -80,525
Loss on Sale of Plant Asset -10,000
Other Comprehensive Income (Loss) -94,525
Foreign Currency translations gain 100,000
Unrealized Losses on Investment Securities -30,000
70,000
Income Tax Expense 133,000
NET INCOME $200,000
Retained Earnings, January 1, 2010 as reported 400,000
Cost of Goods Sold 896,770
Operating Expenses:
Bond Interest Expense 8,000
Administrative Expenses 35,970
Net Sales
Total Comprehensive Income
Loss on Sale of Plant Asset 10,000
Income Tax Expense 133,000
Prior Period Adjustment: Correction of Inventory overstatement (net of $4,000 tax) 20,000
Extraordinary Items:
Gain on Water Damaage Insurance claim ($15,000 gross, tax of $3,000)* compute amt
Selling Expenses 248,785
Loss from Litigation Settlement ($36,000 gross loss, $14,000 tax savings)* compute amt
Income from Continuing Operations before Tax
Loss from Disposal of a division of a business ($120,000 gross loss, $39,475 tax savings) compute amt
Discontinued Operations:
Income before Extraordinary Items
Income from Continuing Operations (after tax)
Sales 1,678,500
Other Comprehensive Income (Loss)
Less: Sales Returns and Allowances 93,450
NET INCOME
Dividend Revenue 38,000
Foreign Currenty translations gain, net of $15,000 tax 100,000
Comprehensive Income
Other Revenue/Gains:
Income from Operations
Unrealized Losses on Investment Securities, net of $5,000 tax (30,000)
Other Expenses/Losses:
Total Operating Expenses
Gross Profit
(*) Unusual and Infrequent
Here is what I have so far:
Sales Revenue: (begin below this line)
Sales 1,678,500
Less: Sales Returns and Allowances -93,450
Net Sales 1,585,050
Cost of Goods Sold -896,770
GROSS PROFIT 688,280
Operating Expenses:
Bond Interest Expense 8,000
Administrative Expense 35,970
Selling Expense 248,785
Total Operating Expenses 292,755
Income from Operations 395,525
Other Revenues/Gains:
Gain on Water Damage Insurance Claim 18,000
Other Expenses/Losses:
Loss from Litigation Settlement -22,000
Loss from Disposal of a division of a business -80,525
Loss on Sale of Plant Asset -10,000
Other Comprehensive Income (Loss) -94,525
Foreign Currency translations gain 100,000
Unrealized Losses on Investment Securities -30,000
70,000
Income Tax Expense 133,000
NET INCOME $200,000