Question

In its income statement for the year ended December 31, 2022, Skysong, Inc. reported the following condensed data. Operating expenses $ 714,000 Interest revenue $ 27,000 Cost of goods sold 1,250,000 Loss on disposal of plant assets 11,000 Interest expense 63,000 Net sales 2,194,000 Income tax expense 39,000 Other comprehensive income (net of $1,200 tax) 7,700 (a) Prepare a multiple-step income statement. Skysong, Inc. Income Statement

Answer 1

Answer
Income Statement:
Sales revenue		$      2,194,000
Cost of goods sold		$      1,250,000
Gross margin		$         944,000
Operating expenses		$         714,000
Net Operating income		$         230,000
Non Operating revenue\:
Interest revenue		$           27,000
Non Operating expense:
Interest expenses	$     63,000
Loss on disposal of plant	$     11,000	$           74,000
Income before tax		$         183,000
Income tax expenses		$           39,000
Net Income after tax		$         144,000