Question

X. Bonds Company
The following is a single-step income statement for the X. Bonds Company:

X. Bonds Company Income Statement For the Year Ended December 31, 2016
Revenues:
Net Sales	$300,000
Interest Income	20,000
Total Revenues		$320,000
Expenses:
Cost of Goods Sold	$60,000
Selling Expenses	25,000
General and Administrative Expenses	30,000
Interest Expense	14,000
Income Tax Expense	45,000
Total Expenses		174,000
Net Income		$146,000

Refer to X. Bonds Company. If the income statement were prepared in a multiple-step format, income from operations would be:

a.$126,000.

b.$146,000.

c.$185,000.

d.$171,000.

Answer 1

Net Sales                                                $300,000
- Cost of Goods Sold                              $ 60,000
Gross profit                                               $240000
- Selling Expenses                                   $25,000
- General and Administrative Expenses    $30,000
Operating profit                                          $185000

So correct option is C.