Help with accounting 101-10pts. for the first correct answer-Thanks!?

Question

Company's financial information:
Average shares outstanding $20,000
Cost of Goods sold 36,000
Debt outstanding 65,000
General and admin. expenses 12,000
Income tax expenses 20,000
Interest Expense 7,500
Payments to Owners 30,000
Rental revenue 50,000
Sales revenue 81,000
Selling revenue 28,000
service revenue 23,000

info provided, compute following amounts for the period:

gross profit, operating expenses, income from operations, pretax income, net income, earnings per share.

I am failing and need serious help and dont have time for tutoring. Also any helpful websites? Thanks!

I didn't mean selling revenue, I meant selling expenses. Thank-you Steve P!

Also, this is not homework for points. It is a self-study problem, for the review. And I sincerely need help. I cant figure out where debt outstanding should go.

Answer 1

Sales revenue 81,000
less Cost of Goods sold 36,000
Gross profit 45,000

Operating expenses:
General and admin. expenses 12,000
Selling expenses 28,000
Sub-total 40,000

Income from operations 5,000
Add others:
Rental revenue 50,000
Service revenue 23,000
less Interest Expense (7,500)
Pretax income 70,500
less Income tax expenses (20,000)
Net income 50,500

EPS = 50,500/Average shares outstanding 20,000 = $2.525

Debt outstanding 65,000 and Payments to Owners 30,000 are balance sheet items and I don't think they figure in income determination.

Note: Depending on the business of the co., rental and service revenue could be operating in which case they should form part of income from operations.

Answer 2

Check something, you said sales revenue and selling revenue. Did you mean this? It seems both are the same.