Question

The following information is available for Kingbird Corp. for the year ended December 31, 2022.

Other revenues and gains		$24,200
Other expenses and losses		4,400
Cost of goods sold		295,000
Sales discounts		5,200
Sales revenue		762,000
Operating expenses		224,000
Sales returns and allowances		11,200

Prepare a multiple-step income statement for Kingbird Corp. The company has a tax rate of 25%.

Answer 1

Multiple step income statement

Sales	762,000
Sales returns and allowance	- 11,200
Sales discounts	- 5,200
Net sales		745,600
Cost of goods sold		- 295,000
Gross profit		450,600
Operating expenses		- 224,000
Operating profit		226,600
Other revenues and gains		24,200
Other expenses and losses		- 4,400
Income before tax		246,400
Income tax expense		- 61,600
Net income		184,800