Response to the following problem:
At the end of 2012, vandals destroyed your financial records. Fortunately, the controller had kept certain statistical data related to the income statement, as follows:
a. Cost of goods sold was $2 million.
b. Administrative expenses were 20% of the cost of sales but only 10% of sales.
c. Selling expenses were 150% of administrative expenses.
d. Bonds payable were $1 million, with an average interest rate of 11%.
e. The tax rate was 48%.
f. 50,000 shares of common stock were outstanding for the entire year.
Required :
From the information given, reconstruct a multiple-step income statement for the year. Include earnings per share.