Preparation of the single-step and multiple-step income statement
The following data were taken from the records of Motion Data Inc at December 31, 20D
|
Sales Revenue
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$120,000
|
|
Administration expense
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10,000
|
|
Selling expense
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18,000
|
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Income tax rate
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25%
|
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Gross margin (profit ratio)
|
40%
|
|
Shares outstanding
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2,000
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1. Prepare a complete single-step income statement for the company (including pretax income, and earnings per share)
2. Prepare a complete multiple-step income statement for the company (including gross margin, pretax income, and earnings per share)