The adjusted trial balance of Pacific Scientific Corporation on
December 31, 2018, the end of the company’s fiscal year, contained
the following income statement items ($ in millions): sales
revenue, $2,185; cost of goods sold, $1,410; selling expenses,
$200; general and administrative expenses, $190; interest expense,
$60; and gain on sale of investments, $155. Income tax expense has
not yet been recorded. The income tax rate is 35%. Assume the
company’s accountant prepared a multiple-step income
statement.
a. What amount would appear in that statement for
operating income? Ignore EPS disclosures.
b. What amount would appear in that statement for
nonoperating income? Ignore EPS disclosures.
(For all requirements,
enter your answers in millions (i.e., 10,000,000
should be entered as 10).)
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| a. |
Operating income |
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million |
| b. |
Nonoperating income |
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million |
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The adjusted trial balance of Pacific Scientific Corporation on
December 31, 2018, the end of the company’s fiscal year, contained
the following income statement items ($ in millions): sales
revenue, $2,125; cost of goods sold, $1,290; selling expenses,
$140; general and administrative expenses, $130; interest expense,
$55; and gain on sale of investments, $70. Income tax expense has
not yet been recorded. The income tax rate is 35%.
Prepare a multiple-step income statement for 2018. Ignore EPS
disclosures.
(Amounts to be deducted should be indicated
with a minus sign. Enter your answers in millions (i.e., 10,000,000
should be entered as 10).)
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| PACIFIC SCIENTIFIC CORPORATION |
| Income Statement |
| For the Year Ended December 31,
2018 |
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0 |
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0 |
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0 |
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0 |
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0 |
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The following is a partial year-end adjusted trial
balance.
| Account Title |
Debits |
Credits |
| Sales revenue |
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430,000 |
| Loss on sale of investments |
48,000 |
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| Interest revenue |
|
5,000 |
| Cost of goods sold |
225,000 |
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| General and administrative expenses |
53,000 |
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| Restructuring costs |
63,000 |
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| Selling expenses |
31,500 |
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| Income tax expense |
0 |
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Income tax expense has not yet been recorded. The income tax rate
is 40%.
a. Determine the operating income (loss).
b. Determine the income (loss) before income
taxes.
c. Determine the net income (loss).
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| a. |
Operating income (loss) |
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| b. |
Income (loss) before income taxes |
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| c. |
Net income (loss) |
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