Question

S5-10 (similar to) Cali Communications reported the following figures from its adjusted trial balance for its first year of business, which ended on July 31, 2018: (Click the icon to view the accounts and balances.) Prepare Cali Communications's multi-step income statement for the year ended July 31, 2018. (Use a minus sign or parentheses to show other expenses.) i Data Table Cali Communications Income Statement Year Ended July 31, 2018 $ $ Cash Selling Expenses Accounts Payable Common Stock Notes Payable, long-term Merchandise Inventory Administrative Expenses 3,400 Cost of Goods Sold 1,100 Equipment, net 5,300 Accrued Liabilities 5,140 Net Sales Revenue 1,200 Accounts Receivable 1,400 Interest Expense 3,100 18,200 10,000 1,400 28,000 3,800 Print Done Net Income (Loss)

Answer 1

Net Sales		$28,000
Cost of goods sold		$18,200
Gross margin		$9,800
Operating expenses
Selling expenses	$1,100
Administrative expense	$3,100
Total operating expenses		$4,200
Operating income		$5,600
Non operating and other
Interest expense	$40
Total non operating		$40
Net Income		$5,560