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Bookmarks Window Help ezto.mheducation.com ebay Chegg Study | Guided Solutions and Study Help | Chegg.com ou'll Love ACC203: ACC 203 20003 Spring 2 ACCOUNTING er 6 hw assignment Questions 1-2 (of 17) > December 31, 2015, income stater $260,000 Sales revenue Non-operating revenue Selling expenses General expenses Income tax expense Cost of goods sold $22,000 182,000 102,000 52,000 Administrative expenses 32,000 42,000 value: 10.00 points Required: 1. Prepare a multiple-step income statement. (Losses should be indicated by a minExplanation / Answer
1.
Tisdale Incorporated Multiple-step Income Statement
For the year ended December 31, 2015
Net sales
$ 260,000.00
Cost of goods sold
$ 182,000.00
Gross profit
$ 78,000.00
Selling expenses
$ 52,000.00
General expenses
$ 42,000.00
Administrative expenses
$ 32,000.00
Total operating expenses
$ 126,000.00
Operating income (loss)
-$ 48,000.00
Non operating revenue
$ 102,000.00
Income before income taxes
$ 54,000.00
Income tax expense
$ 22,000.00
Net income
$ 32,000.00
2.
While Tisdale Incorporated is able to report positive net income of $32,000, the company does not appear to have much profit-generating potential. For its core operations, the company reports a negative operating income or loss of $48,000. This means that normal operations are not profitable. These are the operations that continue into the next year. Investors should not count on non operating revenue ($102,000) to recur.
Tisdale Incorporated Multiple-step Income Statement
For the year ended December 31, 2015
Net sales
$ 260,000.00
Cost of goods sold
$ 182,000.00
Gross profit
$ 78,000.00
Selling expenses
$ 52,000.00
General expenses
$ 42,000.00
Administrative expenses
$ 32,000.00
Total operating expenses
$ 126,000.00
Operating income (loss)
-$ 48,000.00
Non operating revenue
$ 102,000.00
Income before income taxes
$ 54,000.00
Income tax expense
$ 22,000.00
Net income
$ 32,000.00
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