Prepare a multi-step income statement for Goodwin Co. from the following data for the year ended December 31, 2008.
Sales 925,000
Cost of merchandise sold 560,000
Administrative expenses 30,000
Interest expense 10,000
Rent revenue 20,000
Sales returns and allowances 55,000
Selling expenses 110,000
Answer:
Goodwin Co.
Income Statement
For Year Ended December 31, 2008
Revenue:
Sales 925,000
less sales RNA 55,000
Net Sales 870,000
less Cost of Merch Sold 560,000
Gross Profit 310,000
Operating Expenses:
Selling Expenses 110,000
Administrative Expeses 30,000
Total operating expenses 140,000
Income from operations 170,000
Other Expenses and Revenue:
Plus Rent Revenue 20,000
Minus Interest Expense 10,000
NET INCOME: 180,000
