Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Sales revenue $350,000
Income tax expense $36,000
Interest expense $13,000
Cost of goods sold $120,000
Salaries expense $35,000
Advertising expense $25,000
Utilities expense $45,000
The multiple-step income statement uses the following structure:
Sales
Less:
Cost of goods sold
= Gross margin
Less:
Operating expenses:
Selling expenses
Administrative expenses
= income from operations
Less:
Interest expense
Tax expense
= Net income
For this case:
Sales= 350,000
COGS= (120,000)
Gross profit= 230,000
Operating expenses:
Salaries expense= (35,000)
Advertising expense= (25,000)
Utilities expense (45,000)
Income from operations= 125,000
Income tax expense= (36,000)
Interest expense= (13,000)
Net income= 76,000
