Question

Lazer industries, inc. manufactures medical equipment parts and accessories. assume all amounts are pre-tax and a 21% tax rate for 20x1.
net sales $1,200,000
interest expense $150,000
gain on sale of discontinued operations $400,000
cost of goods sold $300,000
selling, general and administrative expenses $170,000
gain on sale of investments $30,000
restructuring charges $20,000

required:
prepare a multiple-step income statement for lazer industries, inc. based on the available information for the year ended december 31, 20x1.

Answer 1

The multi-step Income Statement for Lazer Industries, Inc. for the year ended December 31, 20x1 is as follows:

Lazer Industries, Inc.

Multi-step Income Statment

For the year ended December 31, 20x1

Net sales                                          $1,200,000

Cost of goods sold                            $300,000

Gross profit                                       $900,000

Expenses:

Selling, general and  administrative $170,000

Operational income                        $730,000

Interest expense                               $150,000

Ordinary Income before tax          $580,000

Gain on sale of

discontinued operations                $400,000

Gain on sale of investments             $30,000

restructuring charges                      ($20,000)

Taxable income                             $990,000

Tax on ordinary income                 $207,900

Net income                                     $782,100

What is a multiple-step income statement?

A multiple-step income statement is an income statement that categorizes incomes and expenses into operating and non-operating heads so that the net income can be computed after taking into account operating, ordinary, and extraordinary revenues and expenses.

Learn more about multiple-step income statements at brainly.com/question/16945611