Question

Presented below is information for Concord Corporation for the month of March 2020.

Answer 1

Answer:

(a) Multiple-step income statement.

Sales revenue                                          $388,710

Less Sales returns and allowances        ($12,620)

Net Sales                                                 $376,090

Less Cost of Goods Sold                      ($215,090)

Gross Profit                                              $161,000

Less Operating Expenses :

Selling and Distribution Expenses :

Freight-out                                 $6,220

Sales discounts                          $7,240  ($13,460)

Administration Expenses :

Rent expense                           $31,270

Salaries and wages expense  $56,180  ($87,450)

Operating Income / (Loss)                        $60,090

Explanation:

A multiple-step income statement, shows separately Income derived from Primary Activities of the Company (Operating Income) and the Income that includes Secondary Activities of the Company (Net Income).

Operating Expenses are further categorized under Selling and Distribution Expenses and Administration Expenses.