Answer:
The correct option is d. $183,450.
Explanation:
The multiple-step income statement can be described as an income statement that shows gross profit which is net sales revenue minus the cost of goods sold, and separates an organization's operating revenues and operating expenses from its nonoperating revenues, nonoperating expenses, gains, and losses.
The multiple-step income statement is different from a single-step income statement which only employs just one equation to determine profits by simply deducting total revenue from total expenses.
Slattery Corporation's Net income for 2019 can be determined by preparing its Multi-Step Income Statement for 2019 as follows:
Slattery Corporation
Multi-Step Income Statement
For the Year Ended December 31, 2019
<u>Particulars $ $ </u>
Sales revenue 3,425,000
Cost of goods sold <u> (1,611,000) </u>
Gross profit 1,814,000
<u>Operating expenses:</u>
Selling expense (782,000)
General and administrative expense <u> (585,700) </u>
Total operating expenses <u> (1,367,700) </u>
Operating income 446,300
<u>Other expenses and income:</u>
Research and development (96,400)
Gain on sale of bonds 20,300
Interest income 18,400
Restructuring costs (112,000)
Interest expense <u> (32,000) </u>
Total other expenses and income <u> (201,700) </u>
Income before tax 244,600
Tax (Tax rate * Income before tax) <u> 61,150 </u>
Net income <u> 183,450 </u>
Therefore, the correct option is d. $183,450.
