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
