Copyright

Shown below is information relating to operations of Broadway Industries for 2015. Continuing...

Question:

Shown below is information relating to operations of Broadway Industries for 2015.

Continuing operations:

Net sales $6,500,000
Cost and expenses (including income taxes) $5,720,000
Other data:
Current-year profit generated by segment of the business discontinued in May (net of income taxes) $542,100
Gain on disposal of discontinued segment (net of income taxes) $185,900
Prior-period adjustment (decrease in prior years income net of tax benefit) $347,100
Extraordinary loss (net of income tax benefit) $325,000
Cash dividends declared ($6 per share) $520,000

Complete the income statement for Broadway Industries, including earnings per share figures. Broadway Industries has 100,000 shares of a single class of common stock outstanding throughout the year.

Income statement

The proper format for an income statement is as follows: Sales less expenses less income taxes equal profit. Earnings per share is equal to earnings divided by number of outstanding shares.

Answer and Explanation: 1

Become a Study.com member to unlock this answer!

View this answer

See below:

Net sales $6,500,000
Cost and expenses (including income taxes) $(5,720,000)
Extraordinary items
Current-year profit generated by...

See full answer below.


Learn more about this topic:

Loading...
What Is an Income Statement? - Purpose, Components & Format

from

Chapter 2 / Lesson 2
33K

Learn about what goes on an income statement and its format, including how to prepare, what is shown, and examples. Discover the importance of income statements.


Related to this Question

Explore our homework questions and answers library