Answer:
Net income is $435
Step-by-step explanation:
A multi-step income statement is an income statement that shows the detailed expenses, income and total profit of a company for a articular period by using multiple equations to estimate the net income of the company.
This can be prepared as follows:
Pacific Scientific Corporation
Multiple-step income statement for 2021
Details $' million
Sales revenue 2,140
Cost of goods sold (1,300)
Gross profit 840
Selling expense (145)
General and administrative expense (135)
Operating income 560
Other income:
Gain on sale of investments 80
Income before interest 640
Interest expense (60)
Income before tax 580
Income tax expense (25% * 580) (145)
Net income 435