1.Information about Space Travel Corporation, which sells rocket engines, is shown below:
Common shares outstanding150,000
Advertising expense$ 9,000
Cost of goods sold330,000
Income tax expense15,000
Income tax payable7,500
Payments to owners4,500
Compute (a) gross profit, (b) income from operations, (c) net income and (d) earnings per share for the period.
2.Sandovar Company reported the following income statement for June 2007:
For the Month Ended June 30, 2007
Cost of sales552,000
General and administrative expense54,000
Other income and expense, net(22,000)
Income before income taxes64,000
Provision for income tax20,000
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.