✏️Larkspur Co Single-Step Income Statement 🟢

Responses

1. 

   Derrick Williams 23 August 2026

   To be fair Earnings Per Share was not mentioned in the training video. It should be either excluded from this section of the income statement or add it to Section 2.2 where EPS is talked about.

   1. 

      Maroun, CPA 24 August 2026

      Hello Derrick,

      Thank you for the feedback. EPS was briefly mentioned in the lecture around timestamp 11:07, and this exercise only asks for a basic EPS calculation:
      Net income ÷ common shares outstanding

      Therefore, it is not intended to be a complicated EPS question. The more advanced EPS topics, including detailed basic and diluted EPS computations, are covered separately in the EPS chapter.

2. 

   Carl Pratt 9 September 2026

   Expenses include CoGS, operating and non-operating expenses and income tax expense when preparing a single-step Income Statement.

   1. 

      Maroun, CPA 10 September 2026

      Hello Carl,

      That is correct. In a single-step income statement, cost of goods sold, operating expenses, nonoperating expenses and losses, and income tax expense are included together in one expense section.

      The format does not separately calculate gross profit or operating income. Instead:
      Total revenues and gains − Total expenses and losses = Net income

      In this exercise, total expenses are $645,000: $441,000 + $156,000 + $30,000 + $18,000.

      Hope this helps!