2. Prepare a multiple-step income statement for Armstrong Co. from the following data for the year ended December 31. Sales, $755,000; cost of merchandise sold, $330,000; administrative expenses, $35,000; interest expense, $30,000; rent revenue, $25,000; selling expenses, $50,000.

Question

Gwendolyn Francis

Business

2 November, 17:04

2. Prepare a multiple-step income statement for Armstrong Co. from the following data for the year ended December 31. Sales, $755,000; cost of merchandise sold, $330,000; administrative expenses, $35,000; interest expense, $30,000; rent revenue, $25,000; selling expenses, $50,000.

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Stephen Hamilton · Answer 1

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

Armstrong Co.

Multiple - step income statement

For the year ended December 31

Sales $755,000

Less: Cost of goods sold - $330,000

Gross profit $425,000

Less: Operating expenses

Administrative expenses - $35,000

Selling expenses - $50,000

Operating income $340,000

Non operating income or others

Interest expense - $30,000

Rent revenue $25,000

Net income $335,000