Question

Tisdale Incorporated reports the following amount in its December 31, 2021, income statement. Sales revenue $ 350,000 Income tax expense $ 40,000 Non-operating revenue 120,000 Cost of goods sold 200,000 Selling expenses 70,000 Administrative expenses 50,000 General expenses 60,000 Exercise 6-3A Part 1 Required: 1. Prepare a multiple-step income statement. (Losses should be indicated by a minus sign.)

Answer 1

Income Statement
Sales revenue	$350,000
Less: cost of goods sold	200,000
Gross profit	$150,000
Less: Selling and admin. expenses
Selling expenses	70000
General expenses	60000
Administrative expenses	50000
Operating income	$(30,000)
Add: Non-operating revenue	120,000
Net income before tax	$90,000
Less: Income tax expense	40000
Net income	$50,000