Final answer:
To prepare a multiple-step income statement for Sheridan Company, list the revenue and expense items separately. Calculate the total revenue, total expenses, and net income by summing the respective items. The net income for Sheridan Company is $272,090.
Step-by-step explanation:
A multiple-step income statement categorizes revenues and expenses into different sections to provide a clearer picture of a company's financial performance. To prepare a multiple-step income statement for Sheridan Company, we can list the various revenue and expense items in the following manner:
Revenue
Net Sales: $2,416,300
Interest Revenue: $29,970
Other Revenues: $6,920
Cost of Goods Sold
$1,334,200
Operating Expenses
$759,720
Other Expenses
Loss on Disposal of Plant Assets: $15,910
Interest Expense: $71,270
Total Revenue
(Net Sales + Interest Revenue + Other Revenues) = $2,416,300 + $29,970 + $6,920 = $2,453,190
Total Expenses
(Cost of Goods Sold + Operating Expenses + Other Expenses) = $1,334,200 + $759,720 + $15,910 + $71,270 = $2,181,100
Net Income
(Total Revenue - Total Expenses) = $2,453,190 - $2,181,100 = $272,090
Therefore, the multiple-step income statement for Sheridan Company for the year ended December 31, 2019, shows a net income of $272,090.