Exercise 4-5 (Static) 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, 2021
Revenues and gains:
Sales revenue				$	592,000
Interest revenue					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 expense		67,000
Administrative expense		87,000
Interest expense		16,000
Restructuring costs		55,000
Income tax expense		40,000
Total expenses and losses					590,000
Net Income				$	120,000
Earnings per share				$	1.20

Required: Prepare a multiple-step income statement for 2021 applying generally accepted accounting principles. The income tax rate is 25%. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)

AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Gross profit Operating expenses Total operating expenses Operating income Other income (expense): Total other income, net Income before income taxes Net income Earnings per share