Chapter 04.2 - Homework (1) - EXERCISE45(3035minutes(a MultipleStepForm P.BRIDECOMPANY IncomeStatement ,2014(Inthousands, Salesrevenue Costofgoodssold

Chapter 04.2 - Homework (1) - EXERCISE45(3035minutes(a...

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EXERCISE 4-5 (30–35 minutes) (a) Multiple-Step Form P. BRIDE COMPANY Income Statement For the Year Ended December 31, 2014 (In thousands, except earnings per share) Sales revenue ...................................................... $96,500 Cost of goods sold .............................................    60,570 Gross profit ......................................................... 35,930 Operating Expenses       Selling expenses             Sales commissions ................................. $7,980             Depr. of sales equipment ....................... 6,480             Delivery expense .....................................    2,690 $17,150       Administrative expenses             Officers’ salaries ..................................... 4,900             Depr. of office furn. and equip ...............    3,960          8,860    26,010                   Income from operations ................... 9,920 Other Revenues and Gains       Rent revenue .................................................    17,230 27,150 Other Expenses and Losses       Interest expense ............................................          1,860 Income before income tax .................................. 25,290       Income tax .....................................................          9,070 Net income ........................................................... $16,220 Earnings per share ($16,220  ÷  40,550) .............. $.40
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EXERCISE 4-5 (Continued) (b) Single-Step Form P. BRIDE COMPANY Income Statement For the Year Ended December 31, 2014 (In thousands, except earnings per share) Revenues       Net sales ............................................................................. $  96,500       Rental revenue ...................................................................          17,230             Total revenues ..............................................................    113,730 Expenses       Cost of goods sold ............................................................ 60,570
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