Question

Sellall Department Stores reported the following amounts in its adjusted trial balance prepared as of its December 31 year-end: Administrative Expenses, $2,200; Cost of Goods Sold, $21,600; Income Tax Expense, $2,980; Interest Expense, $1,500; Interest Revenue, $180; General Expenses, $2,400; Net Sales Revenue, $36,200; and Delivery (freight-out) Expense, $280. Prepare a multistep income statement for distribution to external financial statement users.

I need values for:

Net sales

Cost of Goods Sold

Gross Profit

Operating Expenses

Income from Operations

Interest Expense

Interest Revenue

Income before Income Tax Expense

Income Tax Expense

Net Income

Answer 1

SALLALL DEPARTMENT STORES
Income Statement
For the Year Ended December 31
Net Sales	$36,200
Cost of Goods Sold	$21,600
Gross Profit                         [$36,200 - $21,600]	$14,600
Operating Expenses             [Refer Working Note 1]	$4,880
Income from Operations       [$14,600 - $4,880]	$9,720
Interest Expense	($1,500)
Interest Revenue	$180
Income Before Income Tax Expense   [$9,720 - $1,500 + $180]	$8,400
Income Tax Expense	$2,980
Net Income       [$8,400 - $2,980]	$5,420

.

.

Working Note 1 - Computation of operating expenses
Administrative Expenses	$2,200
General Expenses	$2,400
Delivery Fright Out	$280
Total operating Expenses	$4,880