Coronado Corporation had net sales of $2,409,000 and interest revenue of $35,100 during 2020. Expenses for 2020 were:

Cost of goods sold $1,452,700

administrative expenses $215,700

selling expenses $287,700, and interest expense $49,800.

Coronado's tax rate is 30%. The corporation had 102,700 shares of common stock authorized and 70,560 shares issued and outstanding during 2020.

Required:

a. Prepare a condensed multiple-step income statement for Coronado Corporation.

Coronado Corporation

Income statement for the year 2020

$ $

Net Sales 2,409,000

Interest Revenue 35,100

Total income 2,409,000

Cost of goods sold (1,452,700)

Gross Income 956,300

Operating Expense

Administrative expenses 215,700

Selling expenses 287,700

Total Operating Expenses (503,400)

Operating Income 452,900

Interest expense (49,800)

Income before Tax 403,100

Tax rate 30% 120,930

Net Income 282,170

Explanation:

Sales and Interest revenue are from the revenue section and totalling them we get total income. After deducting cost of goods sold we have gross income. From here we will subtract operating expenses from gross income to reach at operating income. after deducting interest and tax expenses we can have net income for the year.