Plano Co. 12/31/2021
Partial Trial Balance Data Debits Credits
Sales revenue 830,000
Interest revenue 60,000
Gain on sale of investments 110,000
Cost of goods sold 500,000
Selling expenses 150,000
Restructuring costs 40,000
Interest expense 30,000
General and administrative expenses 60,000
Plano had 50,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 30%.
Required:
Prepare a multiple-step income statement with earnings per share disclosure. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)

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hyderali230 hyderali230 · Answer 1 · 2021-03-13T02:41:14+01:00

Answer:

A multiple-step income statement with earnings per share disclosure is made and attached with this answer in pdf format.

Explanation:

Multistep income statement prepared by calculating income in multiple steps

First gross income is calculated by deducting gross income from sales value.

Then operating income is calculated by deducting the total operating expenses from the gross profit.

The non-operating income and expenses are adjusted in the operating income to calculate the income before tax.

Then income tax is deducted to arrive at net income for the period.

The net income is dividend by the outstanding numbers of shares to calculate the earnings per share.