Pharoah Corporation had net sales of $2,410,700 and interest revenue of $40,600 during 2017. Expenses for 2017 were cost of goods sold $1,458,400, administrative expenses $219,700, selling expenses $285,300, and interest expense $49,100. Pharoah's tax rate is 30%. The corporation had 109,000 shares of common stock authorized and 73,880 shares issued and outstanding during 2017. Prepare a single-step income statement for the year ended December 31, 2017. (Round earnings per share to 2 decimal places, e. g. 1.48.)

Question

Business

Jazmin Marks

17 January, 16:18

Pharoah Corporation had net sales of $2,410,700 and interest revenue of $40,600 during 2017. Expenses for 2017 were cost of goods sold $1,458,400, administrative expenses $219,700, selling expenses $285,300, and interest expense $49,100. Pharoah's tax rate is 30%. The corporation had 109,000 shares of common stock authorized and 73,880 shares issued and outstanding during 2017. Prepare a single-step income statement for the year ended December 31, 2017. (Round earnings per share to 2 decimal places, e. g. 1.48.)

+1

Answers (1)

Know the Answer?

Brooks Wiley · Answer 1

Sales Revenues 2,410,700

COGS (1,458,400)

gross profit 952,300

interest revenue 40,600

interest expense (49,100)

admin expense (219,700)

earnings before taxes 724,100

income tax (217,230)

net income 506,870

Explanation:

We subtract the cost of good sold rom the sales revenue to get the gross profit

Then we discount the other expenses and add up the interest revenue giving the earnings before taxes

Last, we apply the 30% rate to this amount giving our income tax expense

after we subtract it we obtain the net income.