Question

Wayman Corporation reports the following amounts in its December 31, 2021, income statement. Sales revenue $ 355,000 Income tax expense $ 45,000 Interest expense 15,000 Cost of goods sold 125,000 Salaries expense 35,000 Advertising expense 25,000 Utilities expense 45,000 Required: Prepare a multiple-step income statement.

Answer 1

Explanation:

The presentation of the multiple - step income statement is presented below

                                       Wayman Corporation

                               Multiple-step income statement

                                      As on December 31,2021

Sales revenue $355,000  

Less: Cost of goods sold  -$125,000

Gross profit                                            $230,000

Less: Operating expenses

Salaries expense $35,000

Utilities expense $45,000

Advertising expense $25,000  

Total operating expense                    -$105,000

Operating income                                     $125,000

Less: Interest expense                            -$15,000

Income before taxes                             $110,000

Less: Income tax expense                     -$45,000

Net income                                              $65,000