Prepare a multiple-step income statement for Surry Co. from the following data f

ID: 2371033 • Letter: P

Question

Prepare a multiple-step income statement for Surry Co. from the following data for the year ended December 31, 2010.
Sales, $915,000; cost of merchandise sold, $670,000; administrative expenses, $30,000; interest expense, $12,000; rent revenue, $19,000; sales returns and allowances, $55,000; selling expenses, $120,000.

1. If you were to prepare a Multiple Step Income Statement for Surry Co., what would be Surry Co.'s Net income? (Points : 3)        $40,000
       $190,000
       $47,000
       $150,000

2. If you were to prepare a Multiple Step Income Statement for Surry Co., what would be Surry Co. Gross Profit? (Points : 3)        $40,000
       $190,000
       $150,000
       $47,000

3. If you were to prepare a Multiple Step Income Statement for Surry Co., what would be Surry Co.'s total Operating Expenses? (Points : 3)        $150,000
       $190,000
       $40,000
       $47,000

4. If you were to prepare a Multiple Step Income Statement for Surry Co., what would be Surry Co.'s Net Sales? (Points : 3)        $915,000
       $670,000
       $150,000
       $860,000

5. If you were to prepare a Multiple Step Income Statement for Surry Co., what would be Surry Co.'s total of Other Revenue/Other Expenses? (Points : 3)        $19,000
       $7,000
       $12,000
       $40,000

Explanation / Answer

1. If you were to prepare a Multiple Step Income Statement for Surry Co., what would be Surry Co.'s Net income? (Points : 3)

$47,000

2. If you were to prepare a Multiple Step Income Statement for Surry Co., what would be Surry Co. Gross Profit? (Points : 3)

$190,000

3. If you were to prepare a Multiple Step Income Statement for Surry Co., what would be Surry Co.'s total Operating Expenses? (Points : 3)

$150,000

4. If you were to prepare a Multiple Step Income Statement for Surry Co., what would be Surry Co.'s Net Sales? (Points : 3)

$860,000

5. If you were to prepare a Multiple Step Income Statement for Surry Co., what would be Surry Co.'s total of Other Revenue? (Points : 3)

$19,000