Answer:
LINDOR CORPORATION
Statement of Comprehensive Income
For the Year Ended December 31, 2021
Particulars Amount
Sales revenue $2,700,000
Less: Cost of goods sold <u>-$1,590,000</u>
Gross margin $1,110,000
Less: <u>Operating expenses:</u>
Selling & administrative exp. <u>-$431,000</u>
Operating income (EBIT) $679,000
<u>Other income (expenses)</u>
Less: Interest expenses <u>-$59,000</u>
Income before income tax $620,000
Less: Income tax expenses <u>-$155,000</u>
Net income $465,000
Other comprehensive income (net of tax)
Gain on debt securities A $74,250
Comprehensive income B $539,250
Earnings per share A/B $0.24
Calculations of Gain on debt securities, net of tax:
Gain on debt securities before tax $99,000
Less: Tax ($99,000 * 25%) <u>-$24,750 </u>
Gain on debt securities net of tax $74,250
*Calculation of Earnings per share:
Earnings per share = Net income / Number of common shares outstanding = $465,000 / 1,900,000
= $0.24 per share
