Question: At the end of 2012 vandals destroyed your financial records

At the end of 2012, vandals destroyed your financial records. Fortunately, the controller had kept certain statistical data related to the income statement, as follows:
(a) Cost of goods sold was $2 million.
(b) Administrative expenses were 20% of the cost of sales but only 10% of sales.
(c) Selling expenses were 150% of administrative expenses.
(d) Bonds payable were $1 million, with an average interest rate of 11%.
(e) The tax rate was 48%
(f) 50,000 shares of common stock were outstanding for the entire year.

From the information given, reconstruct a multiple- step income statement for the year. Include earnings per share.

View Solution:

Sale on SolutionInn
  • CreatedMay 28, 2014
  • Files Included
Post your question