The following information is available for Flounder Corp. for the year ended December 31, 2017: Other revenues and gains Other expenses and losses Cost of goods sold Other comprehensive income $10,000 Sales revenue 14,900 Operating expenses 246,400 Sales returns and allowances 5,500 $641,300 231,800 40,000

Prepare a multiple-step income statement for Flounder Corp and comprehensive income statement. The company has a tax rate of 30%. This rate also applies to the other comprehensive income. Flounder Corp. Income Statement For the Year Ended December 31, 2017 Revenues Sales Revenue 641300 Less. Sales Returns and Allowances 40000 Net Sales $ 601300 Cost of Goods Sold 246400 Gross Profit 354900 Operating Expenses 231800 Income From Operations 123100 Other Revenues and Gains $ 10000 Other Expenses and Losses 14900

Flounder Corp. Income Statement For the Year Ended December 31, 2017

Revenues:

Sales Revenue $ 641,300

Less Sales Returns and Allowances 40,000

Net Sales $ 601,300

Cost of Goods Sold 246,400

Gross Profit 354,900

Operating Expenses 231,800

Income From Operations $123,100

Income Tax on operations 36,930

Net Income after Income Tax $86,170

Comprehensive Income Statement:

Revenues:

Sales Revenue $ 641,300

Less Sales Returns and Allowances 40,000

Net Sales $ 601,300

Cost of Goods Sold 246,400

Gross Profit 354,900

Operating Expenses 231,800

Income From Operations $123,100

Other Revenues and Gains $ 10,000

Less other Expenses and Losses 14,900

Income from Operations &

other comprehensive income $118,200

Income Tax $35,460

Net Income after Tax $82,740

Explanation:

a) A multi-step income statement arranges the revenue and expenses sequentially in order to bring out some financial performance measurement elements, like the gross profit, income from operations, etc.

b) A Comprehensive income statement is a financial statement that includes both standard income and expenses and other comprehensive income and expenses.