Marin Corporation had net sales of $2,427,500 and interest revenue of $40,000 during 2017. Expenses for 2017 were cost of goods sold $1,465,500, administrative expenses $220,600, selling expenses $289,300, and interest expense $47,900. Marin’s tax rate is 30%. The corporation had 103,100 shares of common stock authorized and 71,990 shares issued and outstanding during 2017. Prepare a condensed multiple-step income statement for Marin Corporation. (Round earnings per share to 2 decimal places, e. g. 1.48.)

The answer follows below;

Explanation:

Marin Corporation

Income Statement

For the year 31, 2017

Sales                              $2,427,500

Cost of Goods Sold     ($1,465,500)

Gross Profit                                                $962,000

Operating Expenses

Admin. Expenses          ($220,600)

Selling Expenses          ($289,300)

Interest Expense            ($47,900)

Total Operating Expenses                        ($557,800)

Operating Income                                        $404,200              

Non Operating Income

Interest Income                                             $40,000          

Total Income before Taxation                    $444,200

Taxes (444,200*30%)                                   ($133,260)      

Net Income after Taxation                            $310,940          

Net Income $310,940

Earnings Per Share$4.323

Explanation:

MARIN COPERATION Income Statement For the Year Ended December 31, 2017

Net Sales$2,427,500

Cost of Goods Sold$1,465,500

Gross Profit/Loss (2,427,500-1,456,500) $962,000

Selling Expenses$289,300

Administrative Expenses$220,600

($289,300+$220,600) $509,900

Income from Operations ($962,000-$509,900) $452,100

Other Revenues and Gains

Interest Revenue $40,000

Other Expenses and Losses

Interest Expense $47,900

($40,000-$47,900) $7,900

Income Before Income Tax ($452,100-$7,900) $444,200

Income Tax Expense (30%×444,200) $133,260

Net Income/Loss (444,200- 133,260) $310,940

Earnings Per Share$4.323