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15 September, 09:01

Wayman Corporation reports the following amounts in its December 31, 2018, income statement. Sales revenue $ 376,000 Income tax expense $ 48,000 Interest expense 18,000 Cost of goods sold 128,000 Salaries expense 38,000 Advertising expense 28,000 Utilities expense 48,000 Required: Prepare a multiple-step income statement.

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  1. 15 September, 09:19
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    Wayman Corporation

    Income statement for the year ended December 31, 2018

    Amount in $ Amount in $

    Sales revenue 432,000

    Cost of goods sold (136,000)

    Gross profit 296,000

    Operating expenses

    Salaries expense 46,000

    Advertising expense 36,000

    Utilities expense 56,000 (138,000)

    Operating income 158,000

    Non-operating or other

    Interest expense (26,000)

    Income before income taxes 132,000

    Income tax expense (56,000)

    Net income 76,000

    Explanation:

    A multiple income statement is one in which incomes and expenses are classified under operating and non-operating heads. Like other forms of income statement, it shows the income and expenses of an entity for a given period of time.
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