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Kingbird Corporation had net sales of $2,413,600 and interest revenue of $37,500 during 2025

Question

Kingbird Corporation had net sales of $2,413,600 and interest revenue of $37,500 during 2025. Expenses for 2025 were cost of goods sold $1,469,200, administrative expenses $221,600, selling expenses $294,200, and interest expense $54,800. Kingbird’s tax rate is 30%. The corporation had 107,700 shares of common stock authorized and 57,582 shares issued and outstanding during 2025. Prepare a single-step income statement for the year ended December 31, 2025.

(Round earnings per share to 2 decimal places, e.g. 1.48.)

Solution

KINGBIRD Corporation

Income Statement

For the Year Ended December 31, 2025

Net Sales         2,413,600
Interest Revenue               37,500
Total Revenues         2,451,100
Expenses
Cost of Goods Sold         1,469,200
Administrative expenses             221,600
Selling Expenses             294,200
Interest expense               54,800
Income Tax Expense             123,390
Total Expenses         2,163,190
Net Income / (Loss)             287,910
Earnings per share                    5.00

Explanation

Taxation Expense = (Total Revenue – Total Expense ) x 30%

= {2,451,100 – (1,469,200 + 221,600 + 294,200 + 54,800)} x 30% = $123,390

Earnings per share = $287,910/57,582 = $5

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