Question

Presented below is information for Concord Corporation for the month of March 2020.

Cost of goods sold $215,090
Rent expense $31,270
Freight-out 6,220
Sales discounts 7,240
Insurance expense 5,180
Sales returns and allowances 12,620
Salaries and wages expense 56,180
Sales revenue 388,710
Collapse question part (a) Prepare a multiple-step income statement.

Answer 1

(a) Multiple-step income statement.

Sales revenue $388,710

Less Sales returns and allowances ($12,620)

Net Sales $376,090

Less Cost of Goods Sold ($215,090)

Gross Profit $161,000

Less Operating Expenses :

Selling and Distribution Expenses :

Freight-out $6,220

Sales discounts $7,240 ($13,460)

Administration Expenses :

Rent expense $31,270

Salaries and wages expense $56,180 ($87,450)

Operating Income / (Loss) $60,090

Step-by-step explanation:

A multiple-step income statement, shows separately Income derived from Primary Activities of the Company (Operating Income) and the Income that includes Secondary Activities of the Company (Net Income).

Operating Expenses are further categorized under Selling and Distribution Expenses and Administration Expenses.