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 ("AI") technologies. Presented below are the items adapted from its recent income statement for the year ended January 31 (in millions, except per share amounts). Net earnings per share was $0.18, and the weighted-average shares used in the computation were 844 million. Cost of subscription and support revenues $ 3,284 Professional services and other revenues $ 1,210 Cost of professional services and other 1,192 Other income 397 General and administrative expense 1,719 Marketing and sales expense 7,945 Income tax expense Subscription and support revenues 729 Research and development expense 16,199 2,781 revenues 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. Required 1 Required 2 Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). SALESWARE.COM, INCORPORATED Consolidated Statement of Income Net revenues: (In millions, except per share amounts)
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 ("AI") technologies. Presented below are the items adapted from its recent income statement for the year ended January 31 (in millions, except per share amounts). Net earnings per share was $0.18, and the weighted-average shares used in the computation were 844 million. Cost of subscription and support revenues $ 3,284 Professional services and other revenues $ 1,210 Cost of professional services and other 1,192 Other income 397 General and administrative expense 1,719 Marketing and sales expense 7,945 Income tax expense Subscription and support revenues 729 Research and development expense 16,199 2,781 revenues 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. Required 1 Required 2 Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). SALESWARE.COM, INCORPORATED Consolidated Statement of Income Net revenues: (In millions, except per share amounts)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 ("AI") technologies. Presented below are the items adapted from its
recent income statement for the year ended January 31 (in millions, except per share amounts). Net earnings per share was $0.18, and
the weighted-average shares used in the computation were 844 million.
Cost of subscription and support
revenues
$ 3,284
Professional services and other
revenues
$ 1,210
Cost of professional services and other
1,192 Other income
397
General and administrative expense
1,719 Marketing and sales expense
7,945
Income tax expense
Subscription and support revenues
729 Research and development expense
16,199
2,781
revenues
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.
Required 1
Required 2
Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement.
Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
SALESWARE.COM, INCORPORATED
Consolidated Statement of Income
Net revenues:
(In millions, except per share amounts)
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