Identify and explain the deficiencies in the presentation of the statements prepared by the company's controller. Do not prepare corrected statements. Include in your answer a list of items which require additional disclosure, either on the face of the statement or in a note. 

Required 

1. Is this income statement presented in the single-step or multiple-step format? 

2. What is the company's approximate income tax rate? 

3. What is the percentage of net income relative to net sales?

Transcribed Image Text:

Statement of Consolidated Income ($ in thousands, except per share data) Year ended December 31, 2015 Net sales $11,339,304 Cost of goods sold 5,780,078 Gross profit 5,559,226 Selling, general, and administrative expenses 3,943,786 Operating income 1,615,440 Interest expense (61,791) Interest and investment income 1,399 Other expenses (6,082) Income before income taxes 1,548,966 Income tax expense 495,117 Net income $ 1,053,849 Statement of Consolidated Income ($ in thousands, except per share data) Year ended December 31, 2015 Net sales $11,339,304 Cost of goods sold 5,780,078 Gross profit 5,559,226 Selling, general, and administrative expenses 3,943,786 Operating income 1,615,440 Interest expense (61,791) Interest and investment income 1,399 Other expenses (6,082) Income before income taxes 1,548,966 Income tax expense 495,117 Net income $ 1,053,849

Answer rating: 100% (QA)

Deficiencies In accordance with IAS 1 104 The comptroller must disclose notes pertaining to 1 Deprec... View the full answer