Given: Information for Corona Co. (be careful with * items. Should they be ignored? Should they be pre or post tax? What is the rule or formula?)

                                                                                                                                                           

Sales revenue                                                                                                                   3,200,000

Selling and administrative expenses                                                                                   580,000

*Discontinued operations loss (pre-tax)                                                                              580,000

*Cash dividends declared on common stock                                                                        67,200

Cost of goods sold                                                                                                            1,760,000

*Gain resulting from computation error on depreciation charge in 2019 (pre-tax)          1,040,000

Other revenue                                                                                                                      240,000

Other expenses                                                                                                                   200,000

Instructions

Prepare in good form a multiple-step income statement for the year 2021. Assume a 15% tax rate and that 100,000 shares of common stock were outstanding during the year.

Answer rating: 100% (QA)

To prepare a multiplestep income statement for Corona Co for the year 2021 we need to follow these steps 1 Calculate the gross profit by subtracting t... View the full answer