Chapter 4 The Income Statement and Statement of Cash Flows6

Chapter 4 The Income Statement and Statement of Cash Flows6

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BRIEF EXERCISES Brief Exercise 4-1 PACIFIC SCIENTIFIC CORPORATION Income Statement For the Year Ended December 31, 2011 ($ in millions) Revenues and gains: Sales .................................................................. $2,106 Gain on sale of investments .............................. 45 Total revenues and gains ............................... 2,151 Expenses and losses: Cost of goods sold ............................................ $1,240 Selling ................................................................ 126 General and administrative ................................ 105 Interest ...............................................................
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Unformatted text preview: 35 Income tax expense* . ....................................... 258 Total expenses and losses . ............................. 1,764 Net income . ......................................................... $ 387 *$2,151 – (1,240 + 126 + 105 + 35) = $645 x 40% = $258 Brief Exercise 4-2 (a) Sales revenue $2,106 Less: Cost of goods sold (1,240 ) Gross profit 866 Less: Selling expenses (126) General and administrative expenses (105 ) Operating income $ 635 (b) Gain on sale of investments 45 Interest expense (35 ) Nonoperating income $10...
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