The work sheet for Lighting Center, Inc., for the year ended December 31 of the current year
Question:
The work sheet for Lighting Center, Inc., for the year ended December 31 of the current year and forms for completing this problem are given in the Working Papers. Instructions: 1. Prepare an income statement. Calculate and record the following component percentages: (a) cost of merchandise sold, (b) gross profit on sales, (c) total expenses, and (d) net income or loss before federal income tax. Round percentage calculations to the nearest 0.1%.
2. Prepare a statement of stockholders’ equity. The company had 90,000 shares of $1.00 par value stock outstanding on January
1. The company issued an additional 10,000 shares during the year.
3. Prepare a balance sheet in report form.
4. Calculate the earnings per share and price-earnings ratio. The current market price of the stock is $28.50.