Question: Exercise 4-5 Income statement presentation [LO4-1, 4-5] The following incorrect income statement was prepared by the accountant of the Axel Corporation: AXEL CORPORATION Income Statement
Exercise 4-5 Income statement presentation [LO4-1, 4-5] The following incorrect income statement was prepared by the accountant of the Axel Corporation: AXEL CORPORATION Income Statement For the Year Ended December 31, 2018
Revenues and gains: Sales $ 592,000
Interest and dividends 32,000
Gain on sale of investments 86,000
Total revenues and gains 710,000
Expenses and losses:
Cost of goods sold $ 325,000
Selling expenses 67,000
Administrative expenses 87,000
Interest 26,000
Restructuring costs 55,000
Income taxes 60,000
Total expenses and losses 620,000
Net Income $ 90,000
Earnings per share $ 0.90
Required: Prepare a multiple-step income statement for 2018 applying generally accepted accounting principles. The income tax rate is 40%. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)
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