Brief Exercise 4-1

Starr Co. had sales revenue of $540,000 in 2014. Other items recorded during the year were:

Cost of goods sold   $330,000
Salaries and wages expense   120,000
Income tax expense   25,000
Increase in value of company reputation   15,000
Other operating expenses   10,000
Unrealized gain on value of patents   20,000

Prepare a single-step income statement for Starr for 2014. Starr has 100,000 shares of stock outstanding. (Round earnings per share to 2 decimal places, e.g. 1.48.)

STARR CO.
Income Statement
For the Year 2014
   
  $

   
 
$

 
 
 
 
 
$

 
$

$

:

:

$

           

       
$

           
       
$

       
 
$

 
     
     
     
     
$

   
 
$

 
   
 
   
$

 
 
$

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Compute free cash flow.
 

Free Cash Flow  
$

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Warning

 

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