Question

Question 5 of 5 < -12 III An inexperienced accountant prepared this condensed income statement for Cullumber Company, a retail firm that has been in business for a number of years. Cullumber Company Income Statement For the Year Ended December 31, 2022 Revenues Net sales $867,000 Other revenues 22.440 889,440 Cost of goods sold 566,100 Gross profit 323,340 Operating expenses Selling expenses 111,180 Administrative expenses 105,060 216,240 Net earnings $107.100 As an experienced, knowledgeable accountant, you review the statement and determine that the following steps were taken by the accountant to compute the amounts presented in the income statement 1. Net sales, as presented, consist of sales $929,220, less freight-out on merchandise sold $33,660, and sales returns and allowances $28,560 olv 24 MacBook Pro

Answer 1

Multi step income statement
revenue
sales		929220
less sales returns and allowance		28560
less sales discount		18360
net sales revenue			882300
cost of goods sold			566100
gross profit			316200
operating expenses
salaries and wages	81600+47940+3060	132600
Depreciation		10200
advertising expense		13260
utilities expense		12240
rent expense	24480-6120	18360
freight outwards		33660
total of operating expense			220320
operating profit			95880
non operating expense and income
rent income			4080
interest expense			2040
income before tax	95880+4080-2040		97920
tax-25%			24480
net income			73440