Answer:
Bramble Corp.
Multiple-step Income Statement
$
Sales revenue 2,399,000
Sales returns and allowances (43,000)
Net Sales Revenue 2,356,000
Less Cost of goods sold (1,084,000)
Gross Profit 1,272,000
<u>Less Operating Expenses :</u>
Selling and Distribution Expenses
Advertising expense 54,000
Freight-out 24,000
Sales discounts 8,600 (86,600)
Administrative Expenses
Depreciation expense 124,000
Salaries and wages expense 674,000
Insurance expense 15,000 (813,000)
Net Operating Income 372,400
<u>Less Non- Operating Expenses :</u>
Interest revenue (32,000)
Rent revenue (24,000)
Income tax expense 69,000
Interest expense 69,000 (82,000)
Net Income/(Loss) 290,400
Explanation:
The multiple-step income statement has been prepared above.
