Question

In its income statement for the year ended December 31, 2017, Crane Company reported the following condensed data. Salaries and wages expenses$767,250Loss on disposal of plant assets$ 137,775 Cost of goods sold1,628,550Sales revenue3,646,500 Interest expense117,150Income tax expense41,250 Interest revenue107,250Sales discounts264,000 Depreciation expense511,500Utilities expense 181,500 Collapse question part (a) Prepare a multiple-step income statement. (List other revenues before other expenses.)

Answer 1

Answer:

NET INCOME = $180,067  

Explanation:

CRANE COMPANY

Income statement for the year ended December 31, 2017

PARTICULARS                                            $                          $

Sales

Sales Revenue                                       3,646,500

Less Sales Discount                               264,000

Net Sales                                                                            3,382,500

Cost of Goods Sold                                                            1,628,550

Gross Profit                                                                         1,753,950

Operating Expenses

Salary and wages Expenses                   767,250

Utility expenses                                        181,500

Depreciation Expenses                            511,500  

Total Operating Expenses                                                  1,460,250

Income from operation                                                         293,700

Add: Other Revenue  

Interest Revenue                                                                    107,250

                                                                                                400,950

Less: Other expenses and losses

Interest expenses                                         41,250

Loss on disposal of plant assets                  137,775              (179,025)

Income before income taxes                                                   221,925

Income Expenses Tax                                                               41,250

NET INCOME                                                                             $180,067