Wayman Corporation reports the following amounts in its December 31, 2021, income statement. Sales revenue $ 355,000 Income tax expense $ 45,000 Interest expense 15,000 Cost of goods sold 125,000 Salaries expense 35,000 Advertising expense 25,000 Utilities expense 45,000 Required: Prepare a multiple-step income statement.

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Business

Jayleen Pruitt

24 October, 08:54

Wayman Corporation reports the following amounts in its December 31, 2021, income statement. Sales revenue $ 355,000 Income tax expense $ 45,000 Interest expense 15,000 Cost of goods sold 125,000 Salaries expense 35,000 Advertising expense 25,000 Utilities expense 45,000 Required: Prepare a multiple-step income statement.

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Deacon Hanna · Answer 1

The presentation of the multiple - step income statement is presented below

Wayman Corporation

Multiple-step income statement

As on December 31,2021

Sales revenue $355,000

Less: Cost of goods sold - $125,000

Gross profit $230,000

Less: Operating expenses

Salaries expense $35,000

Utilities expense $45,000

Advertising expense $25,000

Total operating expense - $105,000

Operating income $125,000

Less: Interest expense - $15,000

Income before taxes $110,000

Less: Income tax expense - $45,000

Net income $65,000