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 prepare a Multi-Step Income Statement on your scratch paper based on the following Partial Adjusted Trial Balance

Accounting Nov 30, 2020

 prepare a Multi-Step Income Statement on your scratch paper based on the following Partial Adjusted Trial Balance. Use this multi-step income statement to answer this question and the next three (3) questions, You will need to know the amounts for net sales, gross profit, operating income, and net income after taxes. Adjusted Trial Balance As of 12/31/20xx Accounts Normal Account Balance Cash $25.913 Accounts Receivable 24.500 Allowance for Uncollectible 3,000 Accounts Inventory 35,000 Deferred Revenue 10.000 Common Stock 150.000 Retained Earnings 10,000 Service Revenue 75.000 Sales Discounts 1.117 Cost of Goods Sold 50.166 Rent Expense 5.140 Interest Expense 4.000 Income Tax Expense 3,000 Question: Based on the Multi-step Income Statement you prepared on your scratch paper, what is the amount of "Net" Sales on the Multi-step Income Statement for the period ending 12/31/? Fill in the blank with your calculated number. DO NOT include commas, $ signs, period, decimal points, etc., just enter the raw number, We courses will add commas to your answer automatically. For example, if you calculated the answer to be $24.123, you would only Input: 24123 HI

Expert Solution

Service revenue $ 75,000
Less: Sales discount ($ 1,117)
Net sales $ 73,883
Less: Cost of goods sold ($ 50,166)
Gross profit (1) $ 23,717
Less: Operating Expenses:  
Rent expense ($ 5,140)
Interest Expense ($ 4,000)
Total operating expense (2) ($ 9,140)
Operating income (1-2) $ 14,577
Less: income tax expense ($ 3,000)
Net income after tax $ 11,577

Net sales = 73883

Gross profit = 23717

Operating income = 14577

Net income after tax = 11577

 

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