Accounting
  Actualities

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the Multiple-Step Income Statement

The multiple-step statement shows the difference between operating and non-operating activities, and matches inflows to outflows of money.

Multi-Step Income Statement Sections

  1. Operating Section
    1. Sales or Revenue Section
    2. Cost of Goods Sold Section
    3. Selling Expenses
    4. Administrative or General Expenses
  2. Nonoperating Section
    1. Other Revenues and Gains
    2. Other Expenses and Loses
  3. Income Tax
  4. Discontinued Operations
  5. Extraordinary Items
  6. Earnings Per Share


Entity Name
Income Statement
For the period Ended date
Sales Revenue
Sales $ 4,153,872
Less: Sales discounts $ 26,425
Less: Sales returns and allowances 66,895 93,320
Net sales revenue 4,060,552
Cost of goods sold 2,689,354
Gross profit 1,371,198
Operating Expenses
Selling expenses
Sales salaries and commissions $ 280,698
Sales office salaries 125,336
Travel and entertainment 52,148
Advertising expense 40,698
Freight and transportation-out 42,109
Shipping supplies and expense 25,172
Postage and stationery 16,811
Telephone and Internet expense 13,164
Depreciation of sales equipment 7,800 603,936
Administrative expenses
Officer's salaries 175,000
Office salaries 63,400
Legal and professional services 25,675
Utilities expense 24,377
Insurance expense 16,284
Depreciation of building 19,000
Depreciation of office equipment 16,225
Stationery, supplies, and postage 3,500
Miscellaneous office expenses 2,866 346,327 950,263
Income from operations 420,935
Other Revenues and Gains
Dividend revenue 57,263
Rent revenue 52,445 109,708
530,643
Other Expenses and Losses
Interest on bonds and notes 188,655
Income from continuing operations before income tax 341,988
Income tax 133,375
Income from continuing operations 208,613
Discontinued operations
Income from operations of health insurance,
less applicable income tax $115,050 179,950
Loss on disposal of health insurance company,
less applicable income tax of $36,075 56,425 123.525
332.138
Extraordinary item
Loss of delivery truck and cargo from meteorite,
less applicable income tax of $97,500 152,500
Net income $ 179,638
 
Earnings per share of common stock
Income from continuing operations $ 1.04
Income from operations of discontinued division, net of tax 0.90
Loss on disposal of discontinued operation, net of tax 0.28
Income before extraordinary item 1.66
Extraordinary loss, net of tax 0.76
Net income 0.90