Question: The financial records of Geneva Inc were destroyed by fire

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.

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  • CreatedSeptember 18, 2015
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