Question

Beasley, Inc., reports the following amounts in its December 31, 2021, income statement.

Sales revenue $ 310,000
Income tax expense $ 39,000
Interest expense 12,000
Cost of goods sold 125,000
Salaries expense 36,000
Advertising expense 23,000
Utilities expense 42,000
Prepare a multiple-step income statement.

Answer 1

$33,000

Step-by-step explanation:

Preparation of a multiple-step income statement.

Beasley, Inc. Multiple-step Income Statement For the Year Ended December 31, 2021

Sales Revenue$310,000

Less Cost of goods sold ($125,000)

Gross Profit $185,000

($310,000-$125,000)

Salaries expense $36,000

Advertising expense $23,000

Utilities expense $42,000

Less Total Operating Expenses ($101,000)

($36,000+$23,000+$42,000)

Operating Income $84,000

($185,000-$101,000)

Less Interest Expense ($12,000)

Income Before Income Taxes $72,000

($84,000-$12,000)

Less Income Tax Expense ($39,000)

Net Income $33,000

($72,000-$39,000)

Therefore multiple-step income statement is $33,000