Chapter 4 The Income Statement and Statement of Cash Flows24

Chapter 4 The Income Statement and Statement of Cash Flows24

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Exercise 4-4 AXEL CORPORATION Income Statement For the Year Ended December 31, 2011 Sales revenue . ................................................................... $ 592,000 Cost of goods sold . ........................................................... 325,000 Gross profit . ...................................................................... 267,000 Operating expenses: Selling ........................................................................... $67,000 Administrative .............................................................. 87,000 Restructuring costs . ....................................................... 55,000 Total operating expenses . ........................................... 209,000 Operating income . ............................................................ 58,000 Other income (expense): Interest and dividends . ................................................... 32,000 Interest expense . ............................................................
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Unformatted text preview: Total other income, net . ................................................. (26,000 ) 6,000 Income before income taxes and extraordinary item ...... 64,000 Income tax expense* . ....................................................... 25,600 Income before extraordinary item . ................................... Extraordinary item: Gain on litigation settlement (net of $34,400 tax expense) ................................................................... Net income . ...................................................................... 38,400 51,600 $ 90,000 Earnings per share: Income before extraordinary item . ................................... Extraordinary gain . ........................................................... Net income . ...................................................................... $ .38 .52 $0 .90 * 40% x $64,000...
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