Required: 1. Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement 2. Which source of operating revenues produces the higher gross profit?
Required: 1. Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement 2. Which source of operating revenues produces the higher gross profit?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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![E5-9 (Algo) Preparing a Classified (Multiple-Step) Income Statement (Challenging) LOS-3
Salesware.com, Incorporated, is a leading provider of enterprise software, delivered through the cloud, with a focus on customer
relationship management, or CRM. The Company helps its customers to connect with their customers through cloud, mobile, social
blockchain, voice, advanced analytics, and artificial intelligence (A) technologies. Presented below are the items adapted from its
recent income statement for the year ended January 31 (n millions, except per share amounts). Net earnings per share was $0.18, and
the weighted average shares used in the computation were 840 millon
Cest of subscription and support
revenues
Cost of professional services and other
revenues
General and administrative expense
Income tax expense
Subscription and support revenues
Required 1
Required:
1. Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement
2. Which source of operating revenues produces the higher gross profit?
Complete this question by entering your answers in the tabs below.
Complete this question by entering your answers in the tabs below.
Net revenues
Required 2
Total net revenue
Cost of sales
Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement.
Note: Enter your answers in millions (ie, 10,000,000 should be entered as 10).
Operating expenses
Total cost of revenues
$3,264 Professional services and other
revenues
1,152 Other income
1,715 Marketing and sales expense
689 Research and development expense
16,159
SALESWARE.COM, INCORPORATED
Consolidated Statement of Income
Total operating expenses
(in millions, except per share amounts)
Earnings per share
Weighted average shares outstanding
Required 1
Required 2
Requut
$
0
2. Which source of operating revenues produces the higher gross profit?
0
Required 2 >
Complete this question by entering your answers in the tabe below.
Which source of operating revenues produces the higher gross pro
Source of operating revenue
$ 3,170
357
7,941
2,317](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcfacf16c-5d28-4d8e-9edb-27f8c408c59d%2F3f367d9e-9bc2-4d27-b9f7-f70e6ead5b86%2Foh4t334_processed.jpeg&w=3840&q=75)
Transcribed Image Text:E5-9 (Algo) Preparing a Classified (Multiple-Step) Income Statement (Challenging) LOS-3
Salesware.com, Incorporated, is a leading provider of enterprise software, delivered through the cloud, with a focus on customer
relationship management, or CRM. The Company helps its customers to connect with their customers through cloud, mobile, social
blockchain, voice, advanced analytics, and artificial intelligence (A) technologies. Presented below are the items adapted from its
recent income statement for the year ended January 31 (n millions, except per share amounts). Net earnings per share was $0.18, and
the weighted average shares used in the computation were 840 millon
Cest of subscription and support
revenues
Cost of professional services and other
revenues
General and administrative expense
Income tax expense
Subscription and support revenues
Required 1
Required:
1. Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement
2. Which source of operating revenues produces the higher gross profit?
Complete this question by entering your answers in the tabs below.
Complete this question by entering your answers in the tabs below.
Net revenues
Required 2
Total net revenue
Cost of sales
Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement.
Note: Enter your answers in millions (ie, 10,000,000 should be entered as 10).
Operating expenses
Total cost of revenues
$3,264 Professional services and other
revenues
1,152 Other income
1,715 Marketing and sales expense
689 Research and development expense
16,159
SALESWARE.COM, INCORPORATED
Consolidated Statement of Income
Total operating expenses
(in millions, except per share amounts)
Earnings per share
Weighted average shares outstanding
Required 1
Required 2
Requut
$
0
2. Which source of operating revenues produces the higher gross profit?
0
Required 2 >
Complete this question by entering your answers in the tabe below.
Which source of operating revenues produces the higher gross pro
Source of operating revenue
$ 3,170
357
7,941
2,317
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