Question:

Multistep Income statement from the following single step statement?

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Net Sales $1833000

Interest Income 13000

total 1846000

Cost and Expenses:

Cost of goods sold 1072000

Selling expenses 279000

Gen. and adm. exp. 175000

Depreciation 14000

Interest expense 16000

Income tax expense 116000

net income 174000

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  1. Net Sales $1833000

    Cost of goods sold 1072000

    …Gross profit $761,000

    Operating Expenses

    Selling expenses 279000

    Gen. and adm. exp. 175000

    Depreciation 14000

    ..Total operating exp. $468,000

    Operating income $293,000

    Non-operating or other

    Interest Income 13000

    Interest expense 16000

    …Total non-operating $3,000

    Income before taxes 290,000

    Income tax expense 116,000

    net income 174,000

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