Question

Ayayai Corporation had net sales of $2,404,500 and interest revenue of $37,700 during 2017. Expenses for 2017 were cost of goods sold $1,466,900, administrative expenses $214,700, selling expenses $284,600, and interest expense $47,200. Ayayai’s tax rate is 30%. The corporation had 100,400 shares of common stock authorized and 70,220 shares issued and outstanding during 2017. Prepare a condensed multiple-step income statement for Ayayai Corporation. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Answer 1

Answer:

          Ayayai Corporation

Income statement for the year end 2017

Net sales of                        $2,404,500

Interest revenue                $37,700      

Total revenue                    $2,442,200

Cost of goods sold           ($1,466,900)

Gross Income                    $975,300

Administrative expenses  ($214,700)

Selling expenses               ($284,600)

Interest expense               ($47,200)    

Profit before tax                 $428,800

Tax rate is 30%.                  ($128,640)

Net Income                          $300,160

Explanation:

Multi-step income statement segregates the operational income and non operation income by calculating the gross income and net income as well. it shows that how much the business is earning from it operations directly and how much it earns after settling all the expenses of the business.