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In: Accounting

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 4 years ago
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