Question

Salaries and wages expenses $ 460 Research and development expense $ 114 Depreciation expense 90 Income tax expense 634 Sales revenue 7,030 Loss on disposal of plant assets 46 Interest expense 161 Cost of goods sold 3,400 Advertising expense 499 Rent expense 105 Sales returns and allowances 230 Utilities expense 60 Assume tax is 35%. Prepare a multiple-step income statement.

Answer 1

Answer:

$ 1,212 Net INCOME

Explanation:

        Income Statement

$ 7,030 Sales

-$ 230 Sales returns and allowances

$ 6,800 Net Sales Revenues

-$ 90 Depreciation expense

-$ 3,400 Cost of goods sold

$ 3,310 Gross PROFIT

-$ 499 Advertising expense

-$ 114 Research and development expense

-$ 460 Salaries and Wages Expenses

-$ 105 Rent expenses

-$ 60 Utilities Expenses

-$ 1,238 Operating EXPENSES

$ 2,072 Operating INCOME

-$ 46 Loss on disposal of plant assets

-$ 161 Interest Expenses

-$ 207 NonOperating EXPENSES

$ 1,865 NET INCOME AFTER TAXES

-$ 653 Income Tax Expenses 35%

$ 1,212 Net INCOME