The financial records of Geneva Inc. were destroyed by fire at the end of
2014. Fortunately, the controller had kept the following statistical data related to the income statement:
l. The beginning merchandise inventory was 584,000 and it decreased by 20% during the current year.
2. Sales discounts amounted to $15,000.
3. There were 15,000 common shares outstanding for the entire year.
4. Interest expense was 520,000.
5. The income tax rate was 25%.
6. Cost of goods sold amounted to $420,000.
7. Administrative expenses were 20% of cost of goods sold but only 4% of gross sales.
8. Selling expenses were four fifths of cost of goods sold.
Instructions
Based on the available data, prepare a single-step income statement for the year ended December 31, 2014, including calculation of EPS. Expenses should be shown by function.