For Mortenson Company, the following information is available: Cost of goods sold is $390,000; Dividend revenue is $15,000; Income tax expense is $36,000; Operating expenses is $138,000; Sales revenue is $600,000.

Question

Business

Noelle Hayes

12 May, 10:01

For Mortenson Company, the following information is available: Cost of goods sold is $390,000; Dividend revenue is $15,000; Income tax expense is $36,000; Operating expenses is $138,000; Sales revenue is $600,000.

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Answers (1)

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Camryn Vaughn · Answer 1

C) Should be reported at $210,000

Explanation:

The computation of the gross profit in case of the multi-step income statement is presented below:

Mortenson Company

Multi step income statement

Sales $600,000

Less: Cost of goods sold - $390,000

Gross profit $210,000

After deducting the cost of goods sold from the sales we can get the gross profit