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    Wilkinson Corporation

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    E7-6 Presented below, in alphabetical order, is information related to Wilkinson Corporation
    for the year 2008.
    Cost of goods sold $1,499,900
    Dividends on common stock 140,000
    Gain on the sale of equipment 80,000
    Income tax expense 150,000
    Interest expense 90,000
    Interest revenue 300,000
    Net sales 2,156,900
    Selling and administrative expenses 340,750
    Wilkinson had 35,500 shares outstanding for the entire year.
    Instructions
    (a) Prepare in good form a single-step income statement for Wilkinson Corporation for 2008.
    (b) Assuming a multiple-step income statement was prepared instead, compute:
    (1) Gross profit.
    (2) Income from operations.
    (3) Net income.
    (c) Calculate Wilkinson Corporation's profit margin percentage (rate of return on sales).

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    https://brainmass.com/business/financial-accounting-bookkeeping/wilkinson-corporation-269692

    Solution Preview

    E7-6 Presented below, in alphabetical order, is information related to Wilkinson Corporation for the year 2008.
    Cost of goods sold $1,499,900
    Dividends on common stock 140,000
    Gain on the sale of equipment 80,000
    Income tax expense 150,000
    Interest expense 90,000
    Interest revenue 300,000
    Net sales 2,156,900
    Selling and administrative expenses 340,750
    Wilkinson had 35,500 shares outstanding for the entire year.
    Instructions ...

    Solution Summary

    This solution is comprised of a detailed explanation to prepare in good form a single-step income statement for Wilkinson Corporation for 2008.

    $2.19

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