Copy of week 3 individual

Copy of week 3 individual - Individual Assignment:...

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Individual Assignment: Assignments from the Text Jennifer Luttrell ACC/421
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E4-6 (a) Multiple-Step Form Whitney Houston Shoe Co. Income Statement For the Year Ended December 31, 2007 Net sales. ............................................................................ $980,000 Cost of goods sold. ............................................................ 496,000 Gross profit on sales. ........................................................ 484,000 Operating Expenses Selling expenses Wages and salaries. ............................................... $114,800 Depr. exp. (70% X $65,000). ................................ 45,500 Materials and supplies. ......................................... 17,600 $177,900 Administrative expenses Wages and salaries. ............................................... 135,900 Other admin. expenses. ........................................ 51,700 Depr. exp. (30% X $65,000). ................................ 19,500 207,100 385,000 Income from operations. .................................................. 99,000 Other Revenues and Gains Rental revenue. ........................................................... 29,000 128,000 Other Expenses and Losses Interest expense. .......................................................... 18,000 Income before income tax. ............................................... 110,000 Income tax. .................................................................. 37,400 Net income. ........................................................................ $ 72,600 Earnings per share ($72,600 ÷ 20,000). ........................... $3.63 (b) Single-Step Form Whitney Houston Shoe Co. Income Statement For the Year Ended December 31, 2007
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C: I prefer the multiple step income statement over the single step statement for the following reasons. The advantage of the multiple-step income statement is that it explicitly displays important financial and managerial information that is useful to help
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Copy of week 3 individual - Individual Assignment:...

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