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8 September, 21:28

The adjusted trial balance of Pacific Scientific Corporation on December 31, 2021, the end of the company's fiscal year, contained the following income statement items ($ in millions) : sales revenue, $2,106; cost of goods sold, $1,240; selling expense, $126; general and administrative expense, $105; interest expense, $40; and gain on sale of investments, $45. Income tax expense has not yet been recorded. The income tax rate is 25%. Prepare a multiple-step income statement for 2021. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i. e., 10,000,000 should be entered as 10).)

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  1. 8 September, 21:33
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    The preparation of the multi step income statement is shown below

    Pacific Scientific Corporation

    Multi - step income statement

    On December, 2021

    Sales revenues $2,106

    Less: Cost of goods sold - $1,240

    Gross profit $866

    Operating expenses

    Less: Selling expenses - $126

    Less: General and administrative expense - $105

    Total operating expenses - $231

    Operations income $635

    Non operating and other items

    Interest expenses - $40

    Gain on sale of investment $45

    Total non operating $5

    Earning before taxes $640

    Less - Income tax expense at 30% - $160

    Net income $480
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