Question

The following information is available for Shamrock Corp. for the year ended December 31, 2022. Other revenues and gains $21,400 Other expenses and losses 3,000 Cost of goods sold 279,000 Sales discounts 3,000 Sales revenue 745,000 Operating expenses 209,000 Sales returns and allowances 8,800 Prepare a multiple-step income statement for Shamrock Corp. The company has a tax rate of 25%.

Answer 1

Sales Revenue		$745,000
Less:
...Sales returns and allowances	$8,800
...Sales Discounts	$3,000
		$11,800
Net Sales		$733,200
Cost of goods sold		$279,000
Gross Profit		$454,200
Operating Expenses		$209,000
Income from Operations		$245,200
Other Revenues and Gains	$21,400
Other Expenses and losses	$3,000
		$18,400
Income Before income taxes		$263,600
Income tax expense ($263,600 * 25%)		$65,900
Net Income/(loss)		$197,700