The following data for the current year ended December 31, 2016, was extracted from the accounting records of Xender Co.: Cost of merchandise sold $937,200 Operating expenses 307,500 Sales 1,230,250 Prepare a multiple-step income statement for the year ended December 31, 2016. Xender Co. Income Statement For the Year Ended December 31, 2016

income statement are given below

Explanation:

given data

Cost of merchandise sold = $937,200

Operating expenses = 307,500

Sales = 1,230,250

solution

income statement are as

Income Statement for the year ended December 31, 2016

Sales $1,230,250

Cost of Merchandise Sold $937,200

Gross Profit $293050

Operating expenses $307,500

net income - $14450

here Gross Profit is Sales - Cost of Merchandise Sold

Gross Profit = $1,230,250 - $937,200 = $293050

and

net income = Gross Profit - Operating expenses

net income = $293050 - $307,500 = - $14450