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18 April, 00:56

The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2016, included the following income accounts: Account Title Debits Credits Sales revenue 2,300,000 Cost of goods sold 1,400,000 Selling and administrative expenses 420,000 Interest expense 40,000 Unrealized holding gains on investment securities 80,000The trial balance does not include the accrual for income taxes. Lindor's income tax rate is 30%. One million shares of common stock were outstanding throughout 2016. Required:Prepare a single, continuous multiple-step statement of comprehensive income for 2016, including appropriate EPS disclosures. (Round EPS answers to 2 decimal places.)

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  1. 18 April, 04:49
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    Net income = $364,000

    Earning per share (EPS) = $0.36 per share.

    Explanation:

    A continuous multiple-step statement of comprehensive income is a form of income statement shows in a categorical and continuous manner operating income, i. e. the profit earned from the primary activities of an entity through buying and selling merchandise, other income and expenses, and net income.

    For this question, continuous multiple-step statement of comprehensive income can be prepared as follows:

    Lindor Corporation

    Multiple-step Statement of Comprehensive Income for 2016

    Details $

    Sales revenue 2,300,000

    Cost of goods sold 1,400,000

    Gross profit 900,000

    Operating expenses:

    Selling and administrative expenses (420,000)

    Operating income 480,000

    Non operating income and exp.:

    Unrealized holding gains on inv. sec. 80,000

    Interest expense (40,000)

    Income before tax 520,000

    Income tax (30% * $520,000) (156,000)

    Net income 364,000

    EPS (364,000 / 1,000,000) 0.36
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