Income Statement Preparation
The following selected information is taken from the records of Pickard and Associates.

Accounts payable.. . $ 143,000
Accounts receivable.. . 95,000
Advertising expense.. . 14,500
Cash.. . 63,000
Supplies expense.. . 31,500
Rent expense.. . 12,000
Utilities expense.. . 2,500
Income taxes (30% of income before taxes)..
Miscellaneous expense.. . 5,100
Owners’ equity.. . 215,000
Salaries expense.. . 78,000
Fees (revenues).. . 476,000

1. Prepare an income statement for the year ended December 31, 2009. (Assume that
11,000 shares of stock are outstanding.)
2. Explain what the EPS ratio tells the reader about Pickard and Associates.

Thanks!

For the income statement you need to follow the format of an Income Statement provided in your accounting textbook.

For number 2 you need to know what Earnings Per Share is and what it measures.

Quote:

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Originally Posted by pready

For the income statement you need to follow the format of an Income Statement provided in your accounting textbook.

For number 2 you need to know what Earnings Per Share is and what it measures.

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Thank you this has been most helpful. I have this thus far.

Pickard and Associates
Income Statement
For the Year Ended December 31, 2009

Revenues $476,000
Expenses $189,500
Net income $286,500

Income Statement
Fees (revenue) $476,000
Advertising Expense $(14,500)
Supplies Expense $(31,500)
Rent Expense $(12,000)
Utilities Expense $(2,500)
Salaries Expense $(78,000)
Miscellaneous Expenses $(5,100)

Net Income $286,500
Income taxes (30% of income before taxes) $8,595,00

Share Price $26.05