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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 ("AI") technologies. Presented below are the items adapted from its recent income statement for the year ended January 31 (in millions, except per share amounts). Net earnings per share was $0.18, and the weighted-average shares used in the computation were 844 million. Cost of subscription and support revenues $ 3,284 Professional services and other revenues $ 1,210 Cost of professional services and other 1,192 Other income 397 General and administrative expense 1,719 Marketing and sales expense 7,945 Income tax expense Subscription and support revenues 729 Research and development expense 16,199 2,781 revenues 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. Required 1 Required 2 Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). SALESWARE.COM, INCORPORATED Consolidated Statement of Income Net revenues: (In millions, except per share amounts)

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 ("AI") technologies. Presented below are the items adapted from its recent income statement for the year ended January 31 (in millions, except per share amounts). Net earnings per share was $0.18, and the weighted-average shares used in the computation were 844 million. Cost of subscription and support revenues $ 3,284 Professional services and other revenues $ 1,210 Cost of professional services and other 1,192 Other income 397 General and administrative expense 1,719 Marketing and sales expense 7,945 Income tax expense Subscription and support revenues 729 Research and development expense 16,199 2,781 revenues 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. Required 1 Required 2 Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). SALESWARE.COM, INCORPORATED Consolidated Statement of Income Net revenues: (In millions, except per share amounts)

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 3E
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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 ("AI") technologies. Presented below are the items adapted from its recent income statement for the year ended January 31 (in millions, except per share amounts). Net earnings per share was $0.18, and the weighted-average shares used in the computation were 844 million. Cost of subscription and support revenues $ 3,284 Professional services and other revenues $ 1,210 Cost of professional services and other 1,192 Other income 397 General and administrative expense 1,719 Marketing and sales expense 7,945 Income tax expense Subscription and support revenues 729 Research and development expense 16,199 2,781 revenues 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. Required 1 Required 2 Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). SALESWARE.COM, INCORPORATED Consolidated Statement of Income Net revenues: (In millions, except per share amounts)
Transcribed Image Text: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 ("AI") technologies. Presented below are the items adapted from its recent income statement for the year ended January 31 (in millions, except per share amounts). Net earnings per share was $0.18, and the weighted-average shares used in the computation were 844 million. Cost of subscription and support revenues $ 3,284 Professional services and other revenues $ 1,210 Cost of professional services and other 1,192 Other income 397 General and administrative expense 1,719 Marketing and sales expense 7,945 Income tax expense Subscription and support revenues 729 Research and development expense 16,199 2,781 revenues 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. Required 1 Required 2 Recognizing that Salesware has two sources of operating revenues, prepare a classified (multiple-step) income statement. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). SALESWARE.COM, INCORPORATED Consolidated Statement of Income Net revenues: (In millions, except per share amounts)
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