use the following information to answer the question below. plano company 12/31/2024 account balances amount…

use the following information to answer the question below. plano company 12/31/2024 account balances amount sales revenue $760,000 interest revenue $64,000 gain on sale of investments $114,000 cost of goods sold $540,000 selling expense $146,000 interest expense $34,000 general and administrative expenses $108,000 plano had 50,000 shares of stock outstanding throughout the year. income tax expense has not yet been accrued. tax rate is 25%. required: prepare a single - step income statement with earnings per share disclosure. note: round earnings per share answer to 2 decimal places.

use the following information to answer the question below. plano company 12/31/2024 account balances amount sales revenue $760,000 interest revenue $64,000 gain on sale of investments $114,000 cost of goods sold $540,000 selling expense $146,000 interest expense $34,000 general and administrative expenses $108,000 plano had 50,000 shares of stock outstanding throughout the year. income tax expense has not yet been accrued. tax rate is 25%. required: prepare a single - step income statement with earnings per share disclosure. note: round earnings per share answer to 2 decimal places.

Answer

Explanation:

Step1: Calculate total revenues and gains

$760000 + 64000+114000=938000$

Step2: Calculate total expenses

$540000 + 146000+34000 + 108000=828000$

Step3: Calculate income before tax

$938000 - 828000=110000$

Step4: Calculate income tax expense

$110000\times0.25 = 27500$

Step5: Calculate net income

$110000-27500 = 82500$

Step6: Calculate earnings per share

$\frac{82500}{50000}=1.65$

Answer:

PLANO COMPANY
Income Statement For the Year Ended December 31, 2024
Revenues and gains:
Sales revenue $760,000$
Interest revenue $64,000$
Gain on sale of investments $114,000$
Total revenues and gains $938,000$
Expenses:
Cost of goods sold $540,000$
Selling expense $146,000$
Interest expense $34,000$
General and administrative expenses $108,000$
Total expenses $828,000$
Income before income tax $110,000$
Income tax expense $27,500$
Net income $82,500$
Earnings per share $1.65$