Question

In its income statement for the year ended December 31, 2017, Crane Company reported the following condensed data. Salaries and wages expenses$767,250Loss on disposal of plant assets$ 137,775 Cost of goods sold1,628,550Sales revenue3,646,500 Interest expense117,150Income tax expense41,250 Interest revenue107,250Sales discounts264,000 Depreciation expense511,500Utilities expense 181,500 Collapse question part (a) Prepare a multiple-step income statement. (List other revenues before other expenses.)

Answer 1

NET INCOME = $180,067

Step-by-step explanation:

CRANE COMPANY

Income statement for the year ended December 31, 2017

PARTICULARS $ $

Sales

Sales Revenue 3,646,500

Less Sales Discount 264,000

Net Sales 3,382,500

Cost of Goods Sold 1,628,550

Gross Profit 1,753,950

Operating Expenses

Salary and wages Expenses 767,250

Utility expenses 181,500

Depreciation Expenses 511,500

Total Operating Expenses 1,460,250

Income from operation 293,700

Add: Other Revenue

Interest Revenue 107,250

400,950

Less: Other expenses and losses

Interest expenses 41,250

Loss on disposal of plant assets 137,775 (179,025)

Income before income taxes 221,925

Income Expenses Tax 41,250

NET INCOME $180,067