Income Statement: The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement. Multi step income statement: A multiple step income statement refers to the income statement that shows the operating, and non-operating activities of the business, under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts. Single-step income statement: Format in which a single subtotal of all revenue items are listed in one column and a single subtotal of all expense items including cost of goods sold are listed in another column. Thus, the subtotal of all expense items is deducted from the subtotal of all revenue items to arrive at the net income at the bottom of the statement. Earnings per share (EPS): The amount of earnings apportioned to each common stock is called as earnings per share. The share or portion of profit earned by each share is called as earnings per share. Formula used to calculate EPS: Earnings per share } = Net income Number of common shares outstanding To prepare: A single-step income statement for 2016, including EPS disclosures.

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Chapter 4, Problem 4.2E

1.

To determine

Income Statement:

The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement.

Multi step income statement:

A multiple step income statement refers to the income statement that shows the operating, and non-operating activities of the business, under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts.

Single-step income statement:

Format in which a single subtotal of all revenue items are listed in one column and a single subtotal of all expense items including cost of goods sold are listed in another column. Thus, the subtotal of all expense items is deducted from the subtotal of all revenue items to arrive at the net income at the bottom of the statement.

Earnings per share (EPS):

The amount of earnings apportioned to each common stock is called as earnings per share. The share or portion of profit earned by each share is called as earnings per share.

Formula used to calculate EPS:

Earnings per share}=Net income Number of common shares outstanding

To prepare: A single-step income statement for 2016, including EPS disclosures.

2.

To determine

To prepare: A multiple-step income statement for 2016, including EPS disclosures.

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