Exam_1_Income_Statement_Solution - Gain from Discontinued...

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EPP, Inc. Income Statement For Year Ended 12/31/2009 Sales Revenue $12,300,000 Sales Returns $(675,000) Net Sales Revenue $11,625,000 Cost of Goods Sold $(4,370,000) Gross Margin $7,255,000 Operating Expenses Administrative Expense $2,212,500 Selling Expense $1,080,000 Total Operating Expense $(3,292,500) Operating Income $3,962,500 Other Revenues and Gains Interest Revenue $321,000 Gain on Sale of Land $105,000 Total Other Revenues and Gains $426,000 Total Other Expenses and Losses Interest Expense $(420,000) Loss on Sale of Securities $(240,000) Total Other Expenses and Losses $(660,000) Income from Continuing Operations Before Taxes $3,728,500 Income Taxes $(1,118,550) Income from Continuing Operations $2,609,950 Discontinued Operations
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Unformatted text preview: Gain from Discontinued Operations (Net of $227,700 Taxes) $531,300 Loss on Disposal (Net of $219,600 Taxes) $(512,400) Net Discontinued Operations $18,900 Income Before Extraordinary Loss $2,628,850 Extraordinary Loss (Net of $162,000 Taxes) $(378,000) Net Income $2,250,850 The following are NOT part of the income statement but to show the calculations. Calculation of Net of Tax Items Gross Taxes Gain from Discontinued Operations $759,000 $227,700 Loss on Disposal $732,000 $219,600 Extraordinary Loss $540,000 $162,000 Earnings Per Share Number of Common Shares Outstanding = $3,000,000/$10 = 300,000 EPS $8.10 $0.06 $8.16 $(1.26) $6.90 Net $531,300 $512,400 $378,000...
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This note was uploaded on 09/20/2011 for the course ACCT 301 taught by Professor Staff during the Spring '11 term at S.F. State.

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Exam_1_Income_Statement_Solution - Gain from Discontinued...

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