Saturn Motorcycle's selected accounts as of December 31 , 2018 , follow:

Selling Expenses $10,400

Interest Revenue 1,900

Net Sales Revenue 130,000

Cost of Goods Sold 81,000

Administrative Expenses 8,500

Required:

Prepare the multi-step income statement for the year ended December 31 , 2018.

Solution and Explanation:

the following is the income statement for the year ending

Saturn motorcycle's

Income statement

year ending december 31, 2018

Particulars Amount

net sales revenue 130000

Less: cost of goods sold 81000

gross profit 49000

Less: operating expense:

Selling expenses 10400

adminstartive expenses 8500

Total operating expenses 18900

operating profit 30100

Non operating revenues (expenses)

add: interest revenue 1900

total other revenue 1900

net income 32000

Note: every amount is in dollars