3.Information about Iron Horses, which sells motorcycles, is shown below:
Common shares outstanding20,000
Cost of goods sold660,000
Income tax expense20,000
Income tax payable14,000
Payments to owners30,000
Compute (a) gross profit, (b) income from operations, (c) net income and (d) earnings per share for the period.
4.Environmental Company reported the following income statement for November 2007:
For the Month Ended November 30, 2007
Cost of sales238,000
General and administrative expense18,500
Other income and expense, net4,500
Income before income taxes31,000
Provision for income tax10,000
Determine (a) gross profit, (b) product cost expensed during year, (c) non-product operating expenses, (d) operating income, (e) net income and (f) earnings per share.