Presented below is a combined single-step income and retained earnings statement for Hardrock Mining Co. for 2017. Net sales $5,281,954
Costs and expenses:
Cost of products sold 4,765,505
Marketing, administrative, and other expenses 193,147
Interest expense 17,143
Other, net 54,529
Total expenses before taxes 5,030,324
Earnings before income taxes 251,630
Provision for income taxes (75,489)
Net income 176,141
Retained earnings at 1/1/17 3,046,660
Dividends on common stock (100,000)
Retained earnings at 12/31/17 $3,122,801

Additional facts gleaned from notes to Hardrock’s financial statements follow (dollar amounts in thousands):

a. Other, net for 20X1 included a corporate restructuring charge of $8,777 and a pre-tax profit of $12,000 on discontinued operations. The remainder of the category is composed of investment losses.
b. Marketing, administrative, and other expenses for 20X1 included a loss on currency translation of $55.
c. All of these transactions were subject to Hardrock’s income tax rate of 21%.
d. Hardrock disclosed earnings per share data only in the notes to the financial statements. The company had 10,000,000 shares of common stock outstanding throughout 20X1.

Required:
Recast this single-step combined income statement and retained earnings statement as a multiple-step income statement. Include appropriate per share amounts.

(a) Net income $198,788

(b) Retained earnings at 12/31/17 = 3,145,448

(c) Note to the account:

Earnings per share for the year is $0.02 per share. That is:

Earnings per share = Net income / Number of common stock outstanding = $198,788 / 10,000,000 = $0.02 per share

Explanation:

Note: See the attached excel file for the multiple-step income statement.

A multi-step income statement refers to an income statement in which the gross profit and the categories of each expenses and income are giving in details before the net income of a company in a specific period is obtained.

The multiple-step income statement of Hardrock Mining Co. for 2017 is given in the attached excel file in which we have the following:

(a) Net income $198,788

(b) Retained earnings at 12/31/17 = 3,145,448

Calculation of earnings per share for the year

The earnings per share can be calculated as follows:

Earnings per share = Net income / Number of common stock outstanding = $198,788 / 10,000,000 = $0.02 per share

Therefore, earnings per share of the company for the year is $0.02 per share.

The note to the account that disclose earnings per share data in the financial statement of Hardrock Mining Co. for 2017 will appear as follows:

Note to the account:

Earnings per share for the year is $0.02 per share. That is:

Earnings per share = Net income / Number of common stock outstanding = $198,788 / 10,000,000 = $0.02 per share

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answer; depth;