Question

The following information is available for Swifty Corporation for the year ended December 31, 2017: Other revenues and gains $9,400 Sales revenue $596,100 Other expenses and losses 13,100 Operating expenses 245,900 Cost of goods sold 171,500 Sales returns and allowances 40,000 Other comprehensive income 5,900 Prepare a multiple-step income statement for Swifty Corporation and comprehensive income statement. The company has a tax rate of 30%. This rate also applies to the other comprehensive income.

Answer 1

Answer:	Swifty Corporation
	Multi-step Income Statement
	Sales Revenue	$            596,100.00
Less:	Sales Return and allowances	$              40,000.00
	Net Sales	$            556,100.00
Less:	Cost of goods sold	$            171,500.00
	Gross profit	$            384,600.00
Less:	Operating expenses	$            245,900.00
	Income from operation	$            138,700.00
Add:	Other revenue and gains	$                9,400.00
Less:	Other expenses and losses	$              13,100.00
	Income before income tax	$            135,000.00	(138700+9400-13100)
Less:	Income tax	$              40,500.00	($135000*30%)
	Net income for the year	$              94,500.00	(135,000-94,500)
	Swifty Corporation
	Statement of Comprehensive Income
	Net income	$              94,500.00
	Other comprehensive income, net of tax	$                4,130.00	($5900*(1-0.3)
	Comprehensive Income	$              98,630.00	(94500+4130)