Answer:
<u>Splish Brothers Corp.</u>
<u>Multiple-step income statement for the year ended December 31, 2022.</u>
Sales Revenue 759,000
Less sales returns and allowances (10,600)
Net Sales 748,400
Less Costs of Good Sold (291,000)
Gross Profit 457,400
Less Operating Expenses
Operating expenses 220,000
Sales discount 4,800 (224,800)
Operating Profit 232,600
Less Non - Operating Expenses
Other revenues and gains (23,600)
Other expenses and losses 4,000 19,600
Net Profit before tax 252,200
Income tax expense (63,050)
Net Profit after tax 189,150
Explanation:
Multiple-step income statement shows separately the income generated from Primary activities and that generated from Secondary activities as above.
