Answer:
WEATHERSPOON SHOE C0.
Income Statement
$ $
Net Sales 980,000
Cost of Goods sold <u>516,000</u>
Gross Profit 464,000
Operating Expenses:
selling expenses
materials and supplies - Sales 17,600
Wages and Salaries - Sales 114,800
Dep on plant asset - Selling 19500 151,900
Administrative expenses
wages and salaries - Administrative 135,900
other administrative expenses 51,700
Dep on Plant asset - Administrative 45,500 <u> 233,100</u>
Operating Profit 79,000
Non-operating/ Other
Rental revenue 29,000
Interest expenses 18,000
Market appreciation on land above cost 31,000
Income tax <u>30,600</u> <u>11,400</u>
Net Income <u> 90,400</u>
Earnings per share = Earnings / number of common shares outstanding
= $90,400/ 20,000 = $4.52
Explanation:
