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7 October, 15:07

Baskin-Robbins is one of the world's largest specialty ice cream shops. The company offers dozens of different flavors, from Very Berry Strawberry to lowfat Espresso 'n Cream. Assume that a local Baskin-Robbins in Raleigh, North Carolina, has the following amounts for the month of July 2021. Salaries expense $ 12,100 Sales revenue $ 61,800 Inventory (July 1, 2021) 1,500 Interest income 1,700 Sales returns 1,100 Cost of goods sold 27,900 Utilities expense 2,800 Rent expense 5,100 Income tax expense 4,400 Interest expense 400 Inventory (July 31, 2021) 1,100 Required: 1. Prepare a multiple-step income statement for the month ended July 31, 2021.

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  1. 7 October, 15:25
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    The preparation of the multiple - step income statement is presented below:

    Baskin-Robbins

    Multiple - step income statement

    For the month of July 2021

    Net Sales $60,700

    Less: Cost of goods sold - $27,900

    Gross profit $32,800

    Less: Operating expenses

    Utilities expense - $2,800

    Rent expense - $5,100

    Salaries expense - $12,100

    Operating income $12,800

    Non operating income or others

    Interest income $1,700

    Interest expense - $400

    Income before income taxes $14,100

    Less: income tax expense - $4,400

    Net income $9,700
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