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    Jawaban Webster Company

    Uploaded by

    Hans Wakhida
    The document provides income statements for Webster Company for the year ended December 31, 2010 using two different formats: multiple-step form and single-step form. The multiple-step form separates revenues and expenses into operating and non-operating categories, while the single-step form combines all revenues and expenses. Both formats show sales of $96,500, total revenues of $113,730, total expenses of $91,440, income before tax of $22,290, income tax of $7,580, and net income of $14,710.

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    Jawaban Webster Company

    Uploaded by

    Hans Wakhida
    93 views4 pages
    The document provides income statements for Webster Company for the year ended December 31, 2010 using two different formats: multiple-step form and single-step form. The multiple-step form separates revenues and expenses into operating and non-operating categories, while the single-step form combines all revenues and expenses. Both formats show sales of $96,500, total revenues of $113,730, total expenses of $91,440, income before tax of $22,290, income tax of $7,580, and net income of $14,710.

    Original Description:

    a

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    The document provides income statements for Webster Company for the year ended December 31, 2010 using two different formats: multiple-step form and single-step form. The multiple-step form separates revenues and expenses into operating and non-operating categories, while the single-step form combines all revenues and expenses. Both formats show sales of $96,500, total revenues of $113,730, total expenses of $91,440, income before tax of $22,290, income tax of $7,580, and net income of $14,710.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    93 views4 pages

    Jawaban Webster Company

    Uploaded by

    Hans Wakhida
    The document provides income statements for Webster Company for the year ended December 31, 2010 using two different formats: multiple-step form and single-step form. The multiple-step form separates revenues and expenses into operating and non-operating categories, while the single-step form combines all revenues and expenses. Both formats show sales of $96,500, total revenues of $113,730, total expenses of $91,440, income before tax of $22,290, income tax of $7,580, and net income of $14,710.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    a)

    Multiple-Step Form
    WEBSTER COMPANY
    Income Statement
    For the Year Ended December 31, 2010
    (In thousands, except earnings per share)

    Sales.............................................................................. $ 96,500
    Cost of goods sold ................................................... 63,570
    Gross profit ................................................................. 32,930

    Operating Expenses
    Selling expenses
    Sales commissions.....................$7,980
    Depr. of sales equipment............. 6,480
    Transportation-out....................... 2,690 $ 17,150

    Administrative expenses
    Officers salaries............................... 4,900
    Depr. of office furn. and equip......... 3,960 8,860 26,010
    Income from operations..................... 6,920

    Other Revenues and Gains


    Rental revenue .................................................... 17,230
    24,150
    Other Expenses and Losses
    Interest expense ................................................. 1,860
    Income before income tax...................................... 22,290
    Income tax ............................................................ 7,580
    Net income .................................................................. $ 14,710

    Earnings per share ($14,710 40,550) ............... $.36


    b)
    Single-Step Form
    WEBSTER COMPANY
    Income Statement
    For the Year Ended December 31, 2010
    (In thousands, except earnings per share)

    Revenues
    Sales ................................................................................... $ 96,500
    Rental revenue................................................................. 17,230
    Total revenues .......................................................... 113,730

    Expenses
    Cost of goods sold......................................................... 63,570
    Selling expenses............................................................. 17,150
    Administrative expenses ............................................. 8,860
    Interest expense.............................................................. 1,860
    Total expenses ......................................................... 91,440

    Income before income tax.................................................. 22,290


    Income tax ............................................................................... 7,580
    Net income........................................................................ $ 14,710

    Earnings per share................................................................ $ 0.36


    Note: An alternative income statement format for the single-step form
    is to show income tax as part of expenses, and not as a separate item
    c)

    Single-step:
    1. Simplicity and conciseness.
    2. Probably better understood by users.
    3. Emphasis on total costs and expenses and net income.
    4. Does not imply priority of one revenue or expense over another
    Multiple-step:
    1. Provides more information through segregation of operating and
    nonoperating items.
    2. Expenses are matched with related revenue

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