1 PRINTER VERSION A BACK NEXT ASSIGNMENT RESOURCES 302 W6 Assignment 5 Exercise 4-6 Exercise 4-6 The following balances were taken from the books of Parnevik Corp. on December 31, 2015. Review Score Review Results by Study Objective Interest revenue Cash Sales revenue Accounts receivable Prepaid insurance Sales returns and allowances Allowance for doubtful accounts Sales discounts Land Equipment Buildings Cost of goods sold Accumulated depreciation-equipment 86,000 51,000 1,280,000 150,000 20,000 150,000 7,000 45,000 100,000 200,000 140,000 621,000 40,000 Accumulated depreciation-buildings Notes receivable Selling expenses Accounts payable Bonds payable Administrative and general expenses Accrued liabilities Interest expense Notes payable Loss from impairment of plant assets Share capital-ordinary Retained earnings 28,000 155,000 194,000 170,000 100,000 97,000 32,000 60,000 100,000 120,000 500,000 21,000 Assume the total effective tax rate on all items is 34%. Prepare an income statement; 100,000 ordinary shares were outstanding during the year. (Round earnings per share to 2 decimal places, e.g. 0.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) PARNEVIK CORP. Income Statement For the Year Ended December 31, 2015 PARNEVIK CORP. Income Statement For the Year Ended December 31, 2015 Revenue Sales Revenue 1280000 Less Sales Returns and Allowances 150000 Sales Discounts 45000 195000 Net Sales Revenue 1085000 Cost of Goods Sold 621000 Gross Profit 464000 Selling Expenses 194000 Administrative and General Expenses 97000 291000 173000 Other Income and Expenses Interest Revenue 86000 Other Income and Expenses Interest Revenue 86000 Interest Expense 60000 26000 Income Before Income Tax 199000 Income Tax 67660 Income Before Income Tax 131340 Income Tax 79200 Net Income/(Loss) 52140 Earnings per share 1.31