Explanation:
The preparation of the multiple-step income statement is presented below:
Weather spoon Shoe Co
Multiple Income statement
For the year ended December 31, 2010
Net sales $980,000
Less: Cost of goods sold $496,000
Gross profit on sales $484,000
Operating Expenses
Less:
Selling expenses
Wages and salaries $114,800
Depreciation expenses (70% × $65,000) $45,500
Materials and supplies $17,600
Administrative expenses
Wages and salaries $135,900
Other administrative expenses $51,700
Depreciation expenses (30% × $65,000) $19,500
Income from operations $99,000
Other Revenues and Gains
Rental revenue $29,000
Other Expenses and Losses
Less: Interest expense $18,000
Income before income tax $110,000
Less: Income tax $37,400
Net income $72,600
Earnings per share ($72,600 ÷ 20,000) $3.63
