Prepare a multiple-step income statement for 2013 applying

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Reference no: EM13588649

The following incorrect income statement was prepared by the accountant of the Axel Corporation:

AXEL CORPORATION Income Statement For the Year Ended December 31, 2013
Revenues and gains:
Sales			$	680,000
Interest and dividends				39,000
Gain from litigation settlement				89,000

Total revenues and gains				808,000
Expenses and losses:
Cost of goods sold	$	360,000
Selling expenses		67,000
Administrative expenses		86,000
Interest		33,000
Restructuring costs		62,000
Income taxes		80,000

Total expenses and losses				688,000

Net Income			$	120,000

Earnings per share			$	1.20

Required:
Prepare a multiple-step income statement for 2013 applying generally accepted accounting principles. The income tax rate is 40%. The gain from litigation settlement is considered an unusual and infrequent event and the amount is material. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.)

Reference no: EM13588649

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