Multiple-Step and Single-Step Income Statements, and Statement of Comprehensive Income On December 31, 2016, Opgenorth Company listed the following items in its adjusted trial balance:
Loss from fire (pretax) $8,000 General and administrative expenses $17,000
Interest revenue 2,500 Sales 160,000
Selling expenses 14,000 Unrealized decrease in fair value of
Cost of goods sold 95,000 available-for-sale securitie 1,800
Loss on sale of equipment (pretax) 2,000
Additional data:
Seven thousand shares of common stock have been outstanding the entire year.
The income tax rate is 30% on all items of income.
Required:
Prepare a 2016 multiple-step income statement. Disregard EPS disclosure.

                     OPGENORTH COMPANY

                        Income Statement

                 For Year Ended December 31, 2016

Sales                                                                 $160,000

Cost of goods sold                                           $95,000

Gross profit                                                       $65,000

Operating expenses

Selling expense                     $14,000  

General and administrative   $17,000

expense  

Total operating expense                                   $31,000

Operating income                                               $34,000

Other items

Interest revenue                                $2,500

Loss on sale of equipment (pretax) -$2,000  

Loss from fire                                    -$8,000     -$7,500

Income before tax                                               $26,500

Income tax                                                           $7,950

Net income                                                          $18,550

Components of Income EPS

EPS =  $18550 / $7000

= $2.65

               OPGENORTH COMPANY

       Statement of Comprehensive Income

         For Year Ended December 31, 2016

Net income                                       $18,550

Other comprehensive loss  

Unrealized decrease in fair value   -$1,800

of available for sale securities          

Comprehensive income                  $16,750

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