Multistep income statement

Below is a partial listing of the adjusted account balances of yates Co at year end on december 31 ,2018

Cost of Goods sold-$ 212,000

Freight out- $7,000

insurance expense-$ 12,000

Rent expense- $32,000

Salaries Expense-$62,000

Sales Discount-$ 8,000

Sales Return and allowances-$ 17,000

Sales-$ 370,000

Prepare a multi step Income statement .assume 25% income tax rate.

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Expert Solution

Income Statement
Sales	$370,000
Less
Sales return and allowances	$17,000
Sales Discount	$8,000
Net Sales		$345,000
Cost of Goods sold		$212,000
Gross Margin		$133,000

Operating Expenses
Freight out	$7,000
Insurance Expense	$12,000
Salary expense	$62,000
Rent Expense	$32,000
Total operating Expenses		$113,000
Net income Before Tax		$20,000
Income Tax Expense		$5,000
Net Income		$15,000

Net Income - 15,000

saddam TK answered 3 years ago

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