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 $ 13,600 Sales revenue $ 69,300 Inventory (July 1, 2021) 2,250 Interest income 3,200 Sales returns 1,200 Cost of goods sold 28,650 Utilities expense 3,550 Rent expense 6,600 Income tax expense 5,900 Interest expense 500 Inventory (July 31, 2021) 1,200 Required: 1. Prepare a multiple-step income statement for the month ended July 31, 2021.

Answer 1

Baskin-Robbins
Multi Step Income Statement
For the month of July 2021
Net Sales:
Total Sales Revenue	69,300
Less:Sales Returns	(1,200)
Net Sales Revenue		68,100
Cost of Goods Sold		(28,650)
Gross Profit		39,450
Operating Expenses:
Salaries Expenses	(13,600)
Utilities Expenses	(3,550)
Rent Expenses	(6,600)
Total		(23,750)
Operating Income		15,700
Non-Operating Items:
Interest Income	3,200
Interest Expenses	(500)
Total		2,700
Income before Income Tax		18,400
Less:Income Tax Expenses		(5,900)
Net Income		12,500