Question

Sheridan Corporation had net sales of $2,414,200 and interest revenue of $35,800 during 2020. Expenses for 2020 were cost of goods sold $1,459,300, administrative expenses $221,600, selling expenses $284,400, and interest expense $54,200. Sheridan’s tax rate is 30%. The corporation had 103,500 shares of common stock authorized and 74,490 shares issued and outstanding during 2020. Prepare a condensed multiple-step income statement for Sheridan Corporation.

Answer 1

Answer:

sales revneue         2,414,200

cost of goods sold (1,459,300)

gross profit           954,900

adimin expenses      (221,600)

selling expense       (284,400)

operating income: 448,900

non-operating income

interest revenue           35,800

interest expense        (54,200)  

                                     (18,400)

income before taxes   430,500

tax expense                  (129,150)

net income                    301,350

Explanation:

The interest are not part fom the company's operation this are non-operational cost and therefore must  be separed.