ACC 311 ch 4 ppt

Single step income statement single step income

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Unformatted text preview: eral or incidental transactions. Gains and losses can result from sale of investments or plant assets, settlement of liabilities, write­offs of assets. Single-Step Income Statement Single-Step Income Statement The single­step statement consists of just two groupings: Revenues Expenses Single­ Single­ Step Step Net Income No distinction between Operating and Non­operating categories. Chapter 4 -8 I ncome St at ement ( in t h o us and s ) Revenues: S ale s I nt e r e s t r e ve nue T o t al r e ve nue Expenses: $ 2 8 5 ,0 0 0 17 ,0 0 0 3 0 2 ,0 0 0 Co s t o f g o o d s s o ld A d ve r t is ing e x pe ns e De pr e c ia t io n e x pe ns e I nt e r e s t e x pe ns e I nc o m e t a x e x pe ns e T o t al e x pe ns e s Net income 14 9 ,0 0 0 10 ,0 0 0 4 3 ,0 0 0 2 1,0 0 0 2 4 ,0 0 0 2 4 7 ,0 0 0 $ 5 5 ,0 0 0 Earnings per share $ 0 .7 5 The Multiple Step Income Statement • The presentation divides information into major sections on the statement. • The statements distinguishes operating from non­ operating activities. • The income tax effects are shown separately as well. • Intermediate income numbers useful to analysts are computed. 9 Multiple-Step Income Statement Multiple-Step Income Statement The presentation divides The presentation divides information into major information into major sections. sections. 1. Operating Section 1. Operating Section 2. Nonoperating Section 2. Nonoperating Section I ncome St at ement ( in t h o us and s ) Sales $ 2 8 5 ,0 0 0 Co s t o f g o o d s s o ld Gr o s s pr o f it Operat ing expenses: 14 9 ,0 0 0 13 6 ,0 0 0 A d ve r t is ing e x pe ns e De pr e c iat io n e x pe ns e T o t a l o pe r at ing e x pe ns e I ncome f rom operat ions 10 ,0 0 0 4 3 ,0 0 0 5 3 ,0 0 0 8 3 ,0 0 0 Ot her revenue (expense): Chapter 4-10 17 ,0 0 0 (2 1,0 0 0 ) (4 ,0 0 0 ) 7 9 ,0 0 0 2 4 ,0 0 0 $ 5 5 ,0 0 0 Ear nings per sha...
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This note was uploaded on 02/01/2014 for the course ACC 311 taught by Professor Professorchandra during the Fall '13 term at SUNY Albany.

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