Question

In its income statement for the year ended December 31, 2017, Blossom Company reported the following condensed data. Salaries and wages expenses Cost of goods sold Interest expense Interest revenue Depreciation expense $450,000 Loss on disposal of plant assets 1,149,500 Sales revenue 65,000 Income tax expense 145,200 Sales discounts 300,000 Utilities expense $83,000 2,210,000 25,000 120,000 100,000 Your answer is partially correct. Prepare a multiple-step income statement. (List other revenues before other expenses.) BLOSSOM COMPANY Income Statement For the Year Ended December 31, 2017 - Sales Sales Revenue 2210000 Less : Sales Discounts 120000 Net Sales Cost of Goods Sold 1149500 Gross Profit Operating Expenses Salaries and Wages Expense 450000 i Utilities Expense 100000 Depreciation Expense Total Operating Expenses 300000 com .ention

Answer 1

$ 2,210,000 $ 120,000 $ 2,090,000 $ 1,149,500 $ 940,500 b cra-b e=c-d BLOSSOM COMPANY Income Statement For the Year Ended December 31, 2017 Sales Sales revenue Lesss: Sales discounts Net sales Cost of goods sold Gross profit Operating expenses Salaries and wages expenses $ 450,000 Utilities expenses $ 100,000 Depreciation expenses $300,000 Total operating expenses Income from operations Other revenue and gains Interest revenue Other expenses and losses Interest expense $ 65,000 Loss on disposal of plant assets $ 83,000 $ 850,000 $ 90,500 g=e-f $ 145,200 h Income before taxes Income tax expense Net income $ 148,000 $ 87,700 j=g+h-i $ 25,000 $ 62,700 - k

$62,700 Net income Profit margin = Net sales x 100 = 3% Gross profit Gross profit rate = -X 100 = Net sales $940,500 $2,090,000 x 100 = 45%