The following information is available for Splish Brothers Corp. for the year ended December 31, 2022. Other revenues and gains $21,800 Other expenses and losses 3,200 Cost of goods sold 283,000 Sales discounts 3,200 Sales revenue 747,000 Operating expenses 210,000 Sales returns and allowances 9,000 Prepare a multiple-step income statement for Splish Brothers Corp. The company has a tax rate of 25%.

Net Income 195,300

Explanation:

The question is to prepare a multi-step income statement

Splish Brothres Corp

Income Statement for the year ended December 31, 2022

Particulars/Description Amount ($) Amount ($)

Sales Calculation

Sales Revenue 747,000

Subtract:

Sales Returns 9,000

Sales discounts 3,200 (12,200)

Net Sales 734,800

Cost of Goods sold (283,000)

Gross Profit 451,800

Operating Expenses (210,000)

Operational Income 241,800

Other gains and revenue 21,800

Other Expenses and losses (3,200) 18,600

Income before Income Taxes 260,400

Income tax expense (25% x 260,400) (65,100)

Net Income 195,300