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	$	13,400			Sales revenue	$	68,300
Inventory (July 1, 2021)		2,150			Interest income		3,000
Sales returns		1,100			Cost of goods sold		28,550
Utilities expense		3,450			Rent expense		6,400
Income tax expense		5,700			Interest expense		400
					Inventory (July 31, 2021)		1,100

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

net sales
total sales rev
net sales rev
operating expense
total
operating income
non operating
total

Answer 1

Baskin-Robbins
Multiple-step income statement for the month ended July 31, 2021
Particulars	Amount ($)	Amount ($)
Net Sale Revenue
Total Sales Revenue	68,300
Less: Sales returns	1,100
Net Sales Revenue		67,200
Less: Cost of goods sold		28,500
Gross Profit		38,700
Less: Operating Expenses
Salaries Expenses	13,400
Utilities Expenses	3,450
Rent Expenses	6,400
Total Operating Expenses		23,250
Operating Income		15,450
Non-operating income / (Expenses)
Interest Revenue	3,000
Less: Interest Expenses	-400	2,600
Income before income taxes		18,050
Less: Income tax expenses		5,700
Net Income		12,350