Question

[The following information applies to the questions displayed below.] A company reports the following amount In Its December 31, Year 1, Income statement. Sales revenue Non-operating revenue Selling expenses General expenses $315,00 113,000 63,89 53,000 Income tax expense cost of goods sold Administrative expenses $ 33,00 193,800 43, eee Required: 1. Prepare a multiple-step Income statement. (Losses should be Indicated by a minus sign.) Multiple-step Income Statement For the year ended December 31, Year 1 Total operating expenses Operating income (loss)

Answer 1

Sol. Multiple-Step Income Statement for the year ended December 31, Yearl Sales Revenue $ 315,000 Cost of Goods Sold $(193,000) Gross Profit $122,000 Operating Expense Selling Expenses $(63,000) Administrative Expenses $(43,000) General Expenses $(53.000) Total operating Expenses $(159,000) Opereeting In conde/loss} $(37,000) Non-operating Revenue $113,000 Income before tax $ 16,000 Income tax Expense $(33.000) - Net Income! $ 43,000