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Wilkinson Corporation

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).

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.

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