Académique Documents
Professionnel Documents
Culture Documents
Expenses
COGS 100
Selling Exp 20
Admin 10
Int Exp 40
Tax expense 60
Total Exp’s 230
Net Income 45
EPS (450 shares) $0.10
Multi-Step method
OPERATING ACTIVITIES
Sales Revenue
xxx…arrive at net sales
Operating Expenses
Selling includes: Sales rep salaries, M&E, advertising, freight-out, postage,
phone/internet
Admin/general: Officer’s salaries, legal & prof services, utilities, insurance, bldg dep,
supplies
Unusual gains/losses
*Either unusual or infrequent, but not both
**NOT net of tax!!!
EXTRAORDINARY ITEMS
Extraordinary gain – (description)
Less: applicable tax
= NET INCOME