Efficient Business Systems uses a perpetual inventory system. The adjusted trial

Question

Efficient Business Systems uses a perpetual inventory system. The adjusted trial balance of Efficient Business Systems at March 31, 2018, follows: (Click the icon to view the adjusted trial balance.) Prepare Efficient's multi-step income statement for the year ended March 31, 2018. (Use a minus sign or parentheses to show other expenses. Enter the account names exactly as shown in the information provided, except for revenue. Show all revenue accounts as Net Sales Revenue. Check your spelling carefully and do not abbreviate.)

Explanation / Answer

Net Income

Solution: Efficient Business Systems Income Statement Year Ended March 31, 2018 Net Sales Revenue 239,000 a Less: Cost of Goods Sold 107,550 b Gross Profit 131,450 c=a-b Operating Expenses: Selling Expenses 27,000 d Administrative Expenses 14,400 e Total Operating Expenses 41,400 f=d+e Operating Income 90,050 g=c-f Other Revenues and (Expenses): Interest Expense -2,400 h Total Other Revenues and (Expenses) -2,400 i=h

Net Income

87,650 j=g-i Please feel free to ask if anything about above solution in comment section of the question.

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