Concord Corporation had net sales revenue of $5,800,000 and investment revenue of $227,000 for the year ended
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Question:
Concord Corporation had net sales revenue of $5,800,000 and investment revenue of $227,000 for the year ended December 31, 2020. Other items pertaining to 2020 were as follows:
| Cost of goods sold | $4,630,000 | ||
| Salaries and wages expense (sales) | 421,000 | ||
| Advertising expense | 122,000 | ||
| Entertainment expense | 77,000 | ||
| Selling expenses | 620,000 | ||
| Salaries and wages expense (administrative) | 291,000 | ||
| Rent expense | 114,000 | ||
| Utilities expense | 43,000 | ||
| Administrative expenses | 448,000 | ||
| Increase in value of company reputation | 73,000 | ||
| Unrealized gain on value of patents | 35,000 | ||
| Interest expense | 159,000 | ||
| Income tax expense | 83,000 |
Concord has 100,000 common shares outstanding throughout the year.
a) Prepare a multiple-step income statement for Concord Corporation, showing expenses by function. Include calculation of EPS.
b) Assume the average market price for the common shares is $18.27. What is Concord’s price-earnings ratio?
Price-earnings ratio is enter the Price earnings ratio.
Expert Answer:
Income slalement particulars Amount Amount Amount Sales revenue Cost of good... View the full answer
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