Answer and Explanation:
The preparation of the multiple-step income statement is presented below:
<u> Beasley, Inc.</u>
<u> Multiple-step income statement</u>
<u> December 31, 2021</u>
Sales revenue $350,000
Less: Cost of goods sold -$125,000
Gross profit $225,000
Less: Operating expenses
Salaries expense -$37,000
Advertising expense -$23,000
Utilities expense -$43,000
Operating income $122,000
Less: interest expense -$12,000
Income before income tax $110,000
Less: income tax expense -$39,000
Net income $71,000
We simply deduct all the expenses from the sales revenue so that the net income could arrive
