The adjusted trial balance of Pacific Scientific Corporation on December 31, 2021, the end of the company's fiscal year, contained the following income statement
The adjusted trial balance of Pacific Scientific Corporation on December 31, 2021, the end of the company's fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,140; cost of goods sold, $1,320; selling expense, $155; general and administrative expense, $145; interest expense, $55; and gain on sale of investments, $95. Income tax expense has not yet been recorded. The income tax rate is 25%. Assume the company's accountant prepared a multiple-step income statement. a. What amount would appear in that statement for operating income? b. What amount would appear in that statement for nonoperating income? (For all requirements, enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) a. Operating income $ 1,000 million b. Nonoperating income $ 1,000 million
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started