Beasley, Inc., reports the following amounts in its December 31, 2021, income statement. Sales revenue $ 330,000 Income tax expense $ 35,000 Interest expense 10,000 Cost of goods sold 129,000 Salaries expense 38,000 Advertising expense 21,000 Utilities expense 43,000 Prepare a multiple-step income statement.

Question

Zaid Perry

Business

24 August, 14:51

Beasley, Inc., reports the following amounts in its December 31, 2021, income statement. Sales revenue $ 330,000 Income tax expense $ 35,000 Interest expense 10,000 Cost of goods sold 129,000 Salaries expense 38,000 Advertising expense 21,000 Utilities expense 43,000 Prepare a multiple-step income statement.

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Chloe Humphrey · Answer 1

The preparation of the multiple-step income statement is presented below:

Explanation:

The preparation of the multiple-step income statement is presented below:

Beasley, Inc

Multiple-step income statement

December 31, 2021

Sales revenue $330,000

Less: Cost of goods sold - $129,000

Gross profit $201,000

Less: Operating expenses

Salaries expense $38,000

Advertising expense $21,000

Utilities expense $43,000

Total operating expenses - $102,000

Operating income $99,000

Non operating income or others

Less: Interest expense $10,000

Total non operating income $10,000

Income before taxes $89,000

Less: income tax expense - $35,000

Net income $54,000