Question

Beasley, Inc., reports the following amounts in its December 31, 2021, income statement. Sales revenue $ 340,000 Income tax expense $ 39,000 Interest expense 10,000 Cost of goods sold 129,000 Salaries expense 32,000 Advertising expense 24,000 Utilities expense 42,000 Prepare a multiple-step income statement.

Answer 1

Answer:

Beasley, Inc.

Beasley, Inc.

Income Statement

For the year ended December 31, 2021:

Sales revenue                    $ 340,000

Cost of goods sold                129,000

Gross profit                          $211,000

Operating Expenses:

Salaries expense                   32,000

Advertising expense             24,000

Utilities expense                   42,000

Total operating expenses $98,000

Operating income (EBIT)  $113,000

Interest expense                  10,000

Income before taxes       $103,000

Income tax expense        $ 39,000

Net income                       $64,000

Explanation:

a) Data and Calculations:

Beasley, Inc.

Income Statement

For the year ended December 31, 2021:

Sales revenue $ 340,000

Cost of goods sold 129,000

Salaries expense 32,000

Advertising expense 24,000

Utilities expense 42,000

Interest expense 10,000

Income tax expense $ 39,000