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Required: 1. Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement 2. Which source of operating revenues produces the higher gross profit?

Required: 1. Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement 2. Which source of operating revenues produces the higher gross profit?

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter5: Accounting Systems
Section: Chapter Questions
Problem 3CP
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E5-9 (Algo) Preparing a Classified (Multiple-Step) Income Statement (Challenging) LOS-3 Salesware.com, Incorporated, is a leading provider of enterprise software, delivered through the cloud, with a focus on customer relationship management, or CRM. The Company helps its customers to connect with their customers through cloud, mobile, social blockchain, voice, advanced analytics, and artificial intelligence (A) technologies. Presented below are the items adapted from its recent income statement for the year ended January 31 (n millions, except per share amounts). Net earnings per share was $0.18, and the weighted average shares used in the computation were 840 millon Cest of subscription and support revenues Cost of professional services and other revenues General and administrative expense Income tax expense Subscription and support revenues Required 1 Required: 1. Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement 2. Which source of operating revenues produces the higher gross profit? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Net revenues Required 2 Total net revenue Cost of sales Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement. Note: Enter your answers in millions (ie, 10,000,000 should be entered as 10). Operating expenses Total cost of revenues $3,264 Professional services and other revenues 1,152 Other income 1,715 Marketing and sales expense 689 Research and development expense 16,159 SALESWARE.COM, INCORPORATED Consolidated Statement of Income Total operating expenses (in millions, except per share amounts) Earnings per share Weighted average shares outstanding Required 1 Required 2 Requut $ 0 2. Which source of operating revenues produces the higher gross profit? 0 Required 2 > Complete this question by entering your answers in the tabe below. Which source of operating revenues produces the higher gross pro Source of operating revenue $ 3,170 357 7,941 2,317
Transcribed Image Text:E5-9 (Algo) Preparing a Classified (Multiple-Step) Income Statement (Challenging) LOS-3 Salesware.com, Incorporated, is a leading provider of enterprise software, delivered through the cloud, with a focus on customer relationship management, or CRM. The Company helps its customers to connect with their customers through cloud, mobile, social blockchain, voice, advanced analytics, and artificial intelligence (A) technologies. Presented below are the items adapted from its recent income statement for the year ended January 31 (n millions, except per share amounts). Net earnings per share was $0.18, and the weighted average shares used in the computation were 840 millon Cest of subscription and support revenues Cost of professional services and other revenues General and administrative expense Income tax expense Subscription and support revenues Required 1 Required: 1. Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement 2. Which source of operating revenues produces the higher gross profit? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Net revenues Required 2 Total net revenue Cost of sales Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement. Note: Enter your answers in millions (ie, 10,000,000 should be entered as 10). Operating expenses Total cost of revenues $3,264 Professional services and other revenues 1,152 Other income 1,715 Marketing and sales expense 689 Research and development expense 16,159 SALESWARE.COM, INCORPORATED Consolidated Statement of Income Total operating expenses (in millions, except per share amounts) Earnings per share Weighted average shares outstanding Required 1 Required 2 Requut $ 0 2. Which source of operating revenues produces the higher gross profit? 0 Required 2 > Complete this question by entering your answers in the tabe below. Which source of operating revenues produces the higher gross pro Source of operating revenue $ 3,170 357 7,941 2,317
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