BE4.2 (LO2) Brisky Corporation had net sales of $2,400,000 and interest revenue of $31,000 during 2019. Expenses for 2019 were cost of goods sold $1,450,000, administrative expenses $212,000, selling expenses $280,000, and interest expense $45,000. Brisky's tax rate is 30%. The company had 100,000 shares authorized and 70,000 shares issued and outstanding during 2019. Prepare an income statement for the year ended December 31, 2019.
Answer
BRISKY CORPORATION
INCOME STATEMENT
for the year ended December 31, 2019
Revenues
Net Sales Revenue.........................$2,400,000
Interest Revenue.............................$31,000
Total Income..............................$2,431,000
Expenses
Cost of Goods Sold...........$1,450,000
Administrative Expenses........$212,000
Selling Expenses...............$280,000
Interest Expense................$45,000
Total Expenses..........................$1,987,000
Net Income Before taxes.....................$444,000
Income tax expense (30%)....................$133,200
Net Income after taxes.....................$310,800
Shares Issued and Outstanding.................70,000
Earning per share ($310,800/70,000)............$4.44