Question

$ $ $ Presented below is information related to Victor Company at December 31, 2019, the end of its first year of operations. In addition to the information presented below, assume 200,000 shares of stock were outstanding during 2019. Also assume a tax rate of 30% on all item Administrative expenses $ 52,500 Gain on sale of investments 25,000 Casualty loss $ 10,000 Interest expense 33,750 Cost of Goods Sold $ 900,000 Interest revenue 15,000 Cumulative decrease in icome from Loss from operations of discontinued change in inventory methods $ 18,000 component of a business (before tax) $ 180,000 Depreciation expense omitted in 2015 $ 78,750 Net Sales $ 1,462,500 Dividend revenue $ 22,500 Selling expenses 71,250 Dividends declared $ 90,000 Income tax expense 56,250 Gain from disposto component of Write-off of goodwill due to business (before tax) $ 225,000 impairment $ 133,500 Requirements: Prepare a partial multiple-step income statement ending with income from operations for the year 2019, in appropriate format, including all headings, subheadings, totals, and subtotals within the partial income statement. S $

Answer 1

VICTOR COMPANY
Partial Multi Step Income Statement
For the year ending December 31, 2019
Particulars		Amount ($)
Sales		1,462,500
Cost of goods sold		900,000
	Gross profit		562,500
Operating expenses
	Administrative expense	52,500
	Selling expenses	71,250
Total operating expenses		123,750
	Income from Operations		438,750