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Dmitry_Shevchenko [17]
3 years ago
13

Prepare a multiple-step income statement for Armstrong Co. from the following data for the year ended December 31. Sales, $755,0

00; cost of merchandise sold, $330,000; administrative expenses, $35,000; interest expense, $30,000; rent revenue, $25,000; selling expenses, $50,000. Armstrong Co. Income Statement For the Year Ended December 31 $ Gross profit $ Operating expenses: $ Total operating expenses $ Other revenue and expense: $ $
Business
1 answer:
OLEGan [10]3 years ago
3 0

Answer:

See explanation

Explanation:

                       Armstrong Co.

          Multi-step Income Statement

  For the year ended, December 31, 20YY

Sales                                              $755,000

<u>Less: Cost of merchandise sold   (330,000)</u>

Gross Profit                                                    $425,000

Less: Operating expenses

Administrative expenses  $35,000

Selling expenses               $50,000

<em><u>Total operating expenses                               $85,000</u></em>

Income from operation                                 $340,000

Other revenue and expenses:

Rent Revenue                    $25,000

interest expense               ($30,000)

<u>Total other revenues (expenses)                      $(5,000)</u>

Income before taxes                                      $335,000

<u>Less: Income Tax                                                     0</u>

Net Income (loss)                                           $335,000

That is the appropriate way to prepare a multi-step income statement

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Cost-reimbursable contracts involve payment to the supplier for direct and indirect actual costs and often include fees.

A cost-reimbursable contract is an agreement between two parties called the contractor and the owner. Here the contractor gets the reimbursement for the cost incurred while carrying out the work as per the contract, and also gets an additional fixed fee from the company or an owner.

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maxonik [38]

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8 0
3 years ago
The following information is available for Armstrong Company: Net income $450 Increase in plant and equip. $170 Depreciation exp
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Answer:

$505

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Adjustments to reconcile net income to operating cash flow.

Net income

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Less : Increase in plant and equipment

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Add : Depreciation expenses

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Veronika [31]

Answer:

The answer is "Option C".

Explanation:

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8 0
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