Question

Wayman Corporation reports the following amounts in its December 31, 2021, income statement.

Answer 1

Answer:

                          Wayman Corporation

                  Multiple-step income statement

Sales                                                              $425,000

Less: Cost of goods sold                              $135,000

Gross Profit                                                    $290,000

Operating Expenses

Salary Expenses                   $45,000

Utility Expenses                    $55,000

Advertising Expenses          $35,000

Total Operating Expenses                             ($135,000)

Net Operating Income                                   $155,000

Other Income and Expenses

Interest expense                                               $25,000

Net Income before Tax                                   $130,000

Income tax expense                                         $55,000

Net Income                                                       $75,000