Presented below is information related to Oriole Corp. for the year 2020.

Net sales $1,534,000 Write-off of inventory due to obsolescence $94,400

Cost of goods sold 920,400 Depreciation expense omitted by accident in 2019 64,900

Selling expenses 76,700 Casualty loss 59,000

Administrative expenses 56,640 Cash dividends declared 53,100

Dividend revenue 23,600 Retained earnings at December 31, 2019 1,156,400

Interest revenue 8,260 Effective tax rate of 20% on all items

Prepare a multiple-step income statement for 2020. Assume that 62,370 shares of common stock are outstanding.

Oriole Corp.

Income Statement

For the Year Ended December 31, 2020

Total sales $1,534,000

Cost of goods sold ($920,400)

Loss from inventory write off ($94,400)

Gross margin $519,200

Operating expenses:

Administrative expenses $56,640

Selling expenses $76,700

Total operating expenses ($133,340)

Income from operations $385,860

Other revenues and gains

Dividend revenue $23,600

Interest revenue $8,260

Total other revenues and gains $31,860

Other expenses and losses

Depreciation expense 2019 $64,900

Casualty loss $59,000

Total other expenses and losses ($123,900)

Net income before taxes $293,820

Income taxes 20% * ($58,764)

Net income $235,056

*Generally dividend revenue is not taxed or only 30% of it sis taxed. Since we were told to apply 20% income tax to all items, I didn't calculate it separately. But if you calculate it separately, then income taxes would be $1,156 lower (total $57,608) and net profit would be higher (total $236,212).