Prepare a multiple-step income statement


Solve the below problem:

Q: Presented below is information for Obley Company for the year ended March 31, 2010. Cost of goods sold $212,000 Rent expense $32,000 Freight-out 7,000 Sales discounts 8,000 Insurance expense 12,000 Sales returns and allowances 13,000 Salary expense 58,000 Sales 370,000

Instructions

(a) Prepare a multiple-step income statement. (List amounts from largest to smallest eg 10, 5, 3, 2.) OBLEY COMPANY Income Statement For the Year Ended March 31, 2010 Sales revenues $ Less: $ Net sales Gross profit Operating expenses Total operating expenses Net income $

(b) Compute the gross profit rate.

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Accounting Basics: Prepare a multiple-step income statement
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