Prepare A Multiple Step Income Statement

Demonstrate results in several stages. 3

Prepare a layered earnings statement for Armstrong Company using the following data for the year ended December 31st.

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Sale, $ 755,000 value of goods sold, $ 330,000 administrative costs, $ 35,000 interest costs, $ 30,000 rental income, $ 25,000 sales costs, $ 50,000.

On sale, 755,000

Goods sold, 330,000

425,000 profit

Administration fee, $ 35,000

Sale price, $ 50,000.

The operating cost is 85,000.

Operating income 340,000

Other income 25,000

Interest expense ($ 30,000)

Non-operating amount (5,000)

Net income 335,000