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The trial balance of Rollins Inc. included the following accounts as of December 31, 2021: Debits Credits 6, Bee, eae 44,500 10, eee 195,000 Sales
The trial balance of Rollins Inc. included the following accounts as of December 31, 2021: Debits Credits 6, Bee, eae 44,500 10, eee 195,000 Sales revenue Interest revenue Loss on sale of investments Loss on debt investments Gain on projected benefit obligation Cost of goods sold Selling expense Restructuring costs Interest expense General and administrative expense 385,00 5,210, eae 490,000 225,00 20, eee 390, eee The loss on debt investments represents a decrease in the fair value of debt securities and is classified as part of other comprehensive income. Rollins had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 25%. Required: Prepare a 2021 multiple-step income statement for Rollins Inc. with earnings per share disclosure. (Amounts to be deducted should be Indicated with a minus sign. Round Earnings per shore answer to 2 decimal places.) Answer is complete but not entirely correct. ROLLINS INC Income Statement For the Year Ended December 31, 2021 Sales revenue S 6.800.000 Cost of goods sold (5.210.000) Gross profit 1.500.000 Operating expenses: Selling expense S 490,000 Restructuring costs 225.000 General and administrative expense 390.000 DOO 1.105.000 485,000 Total operating expenses Operating income Other income (expense) Interest revenue Loss on debt investments Interest expense Loss on sale of investments Total other income, net Income before income taxes Income tax expense Net income (loss) Earnings per share 44,500 (195.000) (20.000) (10.000) > (180.500) 304,500 216.125 X $ 648,375 $ 6.48 X
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