Question

Baskin-Robbins is one of the world’s largest specialty ice cream shops. The company offers dozens of different flavors, from Very Berry Strawberry to lowfat Espresso ’n Cream. Assume that a local Baskin-Robbins in Raleigh, North Carolina, has the following amounts for the month of July 2021.

Salaries expense	$	12,600			Sales revenue	$	64,300
Inventory (July 1, 2021)		1,750			Interest income		2,200
Sales returns		1,000			Cost of goods sold		28,150
Utilities expense		3,050			Rent expense		5,600
Income tax expense		4,900			Interest expense		300
					Inventory (July 31, 2021)		1,000

Required:

1. Prepare a multiple-step income statement for the month ended July 31, 2021.
  

Answer 1

BASKIN - ROBBINS
Multiple - step Income Statement
For the month ended July 31, 2021
	$	$
Revenue
Sales	64,300.00
Less Sales Returns & Allowance	1,000.00
Net Sales		63,300.00
Cost of goods sold		28,150.00
Gross Profit		35,150.00
Operating Expenses
Salaries Expense	12,600.00
Utilities Expenses	3,050.00
Rent Expense	5,600.00
Total operating expenses		21,250.00
Income from Operations		13,900.00
Other Revenues and Gains
Interest income		2,200.00
Other expenses and losses
Interest expense		300.00
Income before taxes		15,800.00
Income tax expense		4,900.00
Net Income		10,900.00