The following incorrect income statement was prepared by the accountant of the Axel Corporation: ...
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Accounting
The following incorrect income statement was prepared by the accountant of the Axel Corporation:
| AXEL CORPORATION Income Statement For the Year Ended December 31, 2018 | |||||
| Revenues and gains: | |||||
| Sales | $ | 740,000 | |||
| Interest and dividends | 47,000 | ||||
| Gain on sale of investments | 94,000 | ||||
| Total revenues and gains | 881,000 | ||||
| Expenses and losses: | |||||
| Cost of goods sold | $ | 400,000 | |||
| Selling expenses | 74,000 | ||||
| Administrative expenses | 94,000 | ||||
| Interest | 41,000 | ||||
| Restructuring costs | 70,000 | ||||
| Income taxes | 80,800 | ||||
| Total expenses and losses | 759,800 | ||||
| Net Income | $ | 121,200 | |||
| Earnings per share | $ | 1.21 | |||
Required: Prepare a multiple-step income statement for 2018 applying generally accepted accounting principles. The income tax rate is 40%. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)
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