Problemelectro wizard company produces a popular video game, Ask an Expert

Accounting

Problem:

Electro Wizard Company produces a popular video game called Destructo which sells for $32. Last year ElectroWizard sold 50,000 Destructo games, each of which costs $6 to produce. Electro Wizard incurred selling and administrative expenses of $80,000 and depreciation expense of $10,000. In addition, Electro Wizard has a $100,000 loan outstanding at 12%. Their tax rate is 40%. There are 100,000 common shares outstanding. Show and explain all work.

Required:

Question: Prepare an income statement for Electro Wizard in good form and include earnings per share (EPS)

Note: Please show guided help with steps and answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171003

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