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12 July, 15:29

Beasley, Inc., reports the following amounts in its December 31, 2021, income statement. Sales revenue $ 350,000 Income tax expense $ 39,000 Interest expense 12,000 Cost of goods sold 125,000 Salaries expense 37,000 Advertising expense 23,000 Utilities expense 43,000 Prepare a multiple-step income statement.

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  1. 12 July, 18:35
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    Answer and Explanation:

    The preparation of the multiple-step income statement is presented below:

    Beasley, Inc.

    Multiple-step income statement

    December 31, 2021

    Sales revenue $350,000

    Less: Cost of goods sold - $125,000

    Gross profit $225,000

    Less: Operating expenses

    Salaries expense - $37,000

    Advertising expense - $23,000

    Utilities expense - $43,000

    Operating income $122,000

    Less: interest expense - $12,000

    Income before income tax $110,000

    Less: income tax expense - $39,000

    Net income $71,000

    We simply deduct all the expenses from the sales revenue so that the net income could arrive
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