Multiple-step income statement. (10 POINTS) Shown below is a recent income state
ID: 341947 • Letter: M
Question
Multiple-step income statement. (10 POINTS) Shown below is a recent income statement for Hampton Light, Inc.: HAMPTON LIGHT, INC. Income Statement For the Year Ended December 31, 19_
Net sales.............................. $4,000,000
Costs and expenses: Costs of goods sold.................. $(2,600,000)
Operating expenses................... (800,000)
Interest expense..................... (100,000) (3,500,000)
Earnings before income taxes....................... $ 500,000
Income taxes....................................... (180,000)
Net earnings....................................... $ 320,000
Prepare an income statement for the year in a multiple-step format.
Explanation / Answer
Multiple income statement Net Sales $ 4,000,000 Cost of goods sold $ 2,600,000 Gross Profit $ 1,400,000 Operating expenses $ 800,000 Operating income $ 600,000 Interest expenses $ 100,000 Income before taxes $ 500,000 Income tax $ 180,000 Net income $ 320,000
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