Question

Tisdale Incorporated reports the following amount in its December 31.2018. income statement.

Sales revenue $285,000 Income tax expense $27,000
Non-operating revenue 107,000 Cost of goods sold 187,000
Selling expenses 57,000 Administrative expenses 37,000
General expenses 47,000

Required:
Prepare a multiple-step income statement and analyze profitability

Answer 1

Answer and Explanation:

The preparation of the multiple-step income statement is presented below:

Sales revenue $285,000

Less:

cost of goods sold - $187,000

Gross profit $98,000

Less:

Selling expenses -$57,000

Administrative expenses -$37,000

General expenses -$47,000

Operating loss -$43,000

Non-operating revenue $107,000

Income before taxes $64,000

Less: income tax expense -$27,000

net income $37,000

since there is the net income so the Tisdale Incorporated would have the high profitable position