Creating the multiple step income statement


Response to the following :

Multiplestep income statement

Refer to the situation described in Problem 1. Prepare a multiple-step income statement for 2016. Ignore EPS disclosures.

Problem. 1:

Single-step income statement

The adjusted trial balance of Pacific Scientific Corporation on December 31, 2016, the end of the company's fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,106; cost of goods sold, $1,240; selling expenses, $126; general and administrative expenses, $105; interest expense, $35; and gain on sale of investments, $45. Income tax expense has not yet been recorded. The income tax rate is 40%.

Prepare a single-step income statement for 2016. Ignore EPS disclosures.

 

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Financial Accounting: Creating the multiple step income statement
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