Financial Statements: B/S, I/S, SCF INCOME STATEMENT PRESENTATION Single-Step method Revenues Net Sales 200 Dividend Rev

50 Rental Rev 25 Total Revs 275 Expenses COGS Selling Exp Admin Int Exp Tax expense Total Exp’s Net Income EPS (450 shares) Multi-Step method OPERATING ACTIVITIES Sales Revenue xxx…arrive at net sales Cost of Goods Sold xxx…arrive at COGS = G.P. on sales Operating Expenses Selling includes: Sales rep salaries, M&E, advertising, freight-out, postage, phone/internet Admin/general: Officer’s salaries, legal & prof services, utilities, insurance, bldg dep, supplies Other revenues and gains Dividend revenue Other expenses and losses Interest expense Unusual gains/losses *Either unusual or infrequent, but not both **NOT net of tax!!! = Income before tax Less: (tax) Income from continuing Operations 100 20 10 40 60 230 45 $0.10

DISCONTINUED OPERATIONS (list each item, net of tax!!!) Income before extraordinary item EXTRAORDINARY ITEMS Extraordinary gain – (description) Less: applicable tax = NET INCOME