Question: What am I missing? Salesware.com, Incorporated, is a leading provider of enterprise software, delivered through the cloud, with a focus on customer relationship management, or
What am I missing?



Salesware.com, Incorporated, is a leading provider of enterprise software, delivered through the cloud, with a focus on customer relationship management, or CRM. The Company helps its customers to connect with their customers through cloud, mobile, social, blockchain, voice, advanced analytics, and artificial intelligence ("AI") technologies. Presented below are the items adapted from its recent income statement for the year ended January 31 (in millions, except per share amounts). Net earnings per share was $0.17, and the weighted-average shares used in the computation were 839 million. $ 1,160 Cost of subscription and support revenues Cost of professional services and other revenues $ 3,259 Professional services and other revenues 1,142 Other income 347 7,940 2,776 General and administrative expense 1,714 Marketing and sales expense Income tax expense 679 Research and development expense Subscription and support revenues 16,149 Required: 1. Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement. 2. Which source of operating revenues produces the higher gross profit? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). SALE SWARE.COM, INCORPORATED Consolidated Statement of Income For Year Ended January 31, Current Year (In millions, except per share amounts) Net revenues: S Professional services and other revenues Subscription and support revenues Total net revenue Cost of sales: Cost of subscription and support revenues Cost of professional services and other revenues Total cost of revenues Gross profit Operating expenses: General and administrative expense Marketing and sales expense Research and development expense Total operating expenses Operating income Other income Income tax expense Net income Earnings per share Weighted average shares outstanding 33 > >> >> 33 Salesware.com, Incorporated, is a leading provider of enterprise software, delivered through the cloud, with a focus on customer relationship management, or CRM. The Company helps its customers to connect with their customers through cloud, mobile, social, blockchain, voice, advanced analytics, and artificial intelligence ("AI") technologies. Presented below are the items adapted from its recent income statement for the year ended January 31 (in millions, except per share amounts). Net earnings per share was $0.17, and the weighted-average shares used in the computation were 839 million. $ 1,160 Cost of subscription and support revenues Cost of professional services and other revenues $ 3,259 Professional services and other revenues 1,142 Other income 347 7,940 2,776 General and administrative expense 1,714 Marketing and sales expense Income tax expense 679 Research and development expense 16,149 Subscription and support revenues Required: 1. Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement. 2. Which source of operating revenues produces the higher gross profit? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Which source of operating revenues produces the higher gross profit? Source of operating revenue Subscription and support revenue
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