Answer: Multi Step Income Statement
As for the information provided,
Sales = $225,000
Less: Sales Discounts = ($15,200)
Less: sales Returns And Allowances = ($3,900)
Net Sales = $205,900
Cost of goods sold = ($88,800)
Gross Profits = $117,100
Expenses:
Selling expenses:
Rent Expense = $10,500
Sales staff wages = $22,400
Sales commission = $13,600
TV advertising expense = $3,000
Total Selling expense = ($49,500)
General And Administrative Expense
Office Supplies = $790
Insurance = $1,240
Depreciation expense Office copier = $420
Office salaries expense = $32,100
Total General Administrative Expense = ($34,550)
Total Expenses = ($84,050)
Operating Income = $33,050
Other Revenues Gains & Losses
Interest revenue = $660
Gain on sale of equipment = $6,250
Total Other Revenues = $6,910
Net Income = $39,960
