Prepare a multiple-step income statement for the year ended


Question - The Delta Company gathered the following condensed data for the year ended December 31, 2014:

Cost of goods sold     

$300,000

Net sales                       

525,000

Administrative expenses     

110,000

Interest expense         

18,000

Common stock dividends paid 

25,000

Selling expenses     

52,000

Income tax percentage    

33%

Instructions:

(1) Prepare a multiple-step income statement for the year ended December 31, 2014.

(2) Compute the gross margin percentage and net profit margin ratio. Delta Company's assets at the beginning of the year were $800,000, and the total assets were $1,000,000 at the end of the year. To qualify for full credit, you must state the formula you are using, show your computations, and explain your findings.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Prepare a multiple-step income statement for the year ended
Reference No:- TGS02889171

Now Priced at $25 (50% Discount)

Recommended (99%)

Rated (4.3/5)