Answer:
Net income is $2,034,560.
Explanation:
The multiple-step income statement refers to an income statement that segregates operating revenues and operating expenses of an organisation from its nonoperating revenues, nonoperating expenses, gains, and losses. In addition, gross profit which is net sales revenue minus the cost of goods sold.
The multiple-step income statement is an alternative to the single-step income statement which reports uses just one equation to calculate profits by deducting total revenue from total expenses from segregating them.
The multiple step income statement of Splish Company for 2020 will look as follows:
Splish Company
Income Statement
For the Year Ended December 31, 2020
<u>Particulars $ $ </u>
Sales Revenue 34,000,000
Cost of goods sold <u> (21,760,000) </u>
Gross profit 12,240,000
Selling and administrative expenses <u> (6,392,000) </u>
Income from operation 5,848,000
<u>Other revenues and gains</u>
Interest revenue 95,200
Gain on the sale of investments <u> 149,600 </u>
Total other revenues and gains <u> 244,800 </u>
6,092,800
<u>Other expenses and losses</u>
Write-off of goodwill (1,115,200)
Loss due to flood damage <u> (530,400) </u>
Total other expenses and losses <u> (1,645,600) </u>
Income from continuing op. b4 tax 4,447,200
Income taxes <u> (1,691,840) </u>
Income from continuing operation 2,755,360
<u>Discontinued operation</u>
Loss on disposal (net of tax) (598,400)
Loss on operations (net of tax) <u> (122,400) </u>
<u> (720,800) </u>
Net income <u> 2,034,560 </u>
