Answer 1

Single Step Income Statement

Revenues
Sales revenue $ 2,350,000
Interest revenue $ 80,000
Total Revenues $ 2,430,000

Expenses
Loss from inventory write down $ 200,000
Cost of Goods Sold $ 1,200,300
Loss on sale of investments $ 22,500
Selling expenses $ 300,000
General and administrative expenses $ 150,000
Interest expense $ 90,000
Total Expenses and losses $ 1,962,800
Pre-tax income $ 467,200
less: tax expense $ 186,880
Net Income $ 280,320

Earnings per share $ 0.93

($ 280,320/300,000 shares)
Answer 2
Multi-step Income Statement

Sales revenue $ 2,350,000

Cost of Goods Sold $ -1,200,300
Gross Profit $ 1,149,700
Operating Expenses
General and administrative expenses $ -150,000
Selling expenses $ -300,000
Total Operating Expenses $ -450,000
Operating Income $ 699,700
Other incomes & expenses
Loss from inventory write down $ -200,000
Loss on sale of investments $ -22,500
Interest expense $ -90,000
Interest revenue $ 80,000
Net Other incomes & expenses $ -232,500
Pre-tax income $ 467,200
less: tax expense $ 186,880
Net Income $ 280,320

Earnings per share $ 0.93

($ 280,320/300,000 shares)