Income Statement Format The following information from Tricon Company\'s operati

Question

Income Statement Format
The following information from Tricon Company's operations is available:

Required
a. Prepare a multiple-step income statement. (Disregard earnings per share amounts.)
b. Prepare a single-step income statement. (Disregard earnings per share amounts.)


a. Hint: Do not enter any answers as negative numbers unless it's indicated with an asterisk *.

b. Hint: Do not enter any answers as negative numbers unless it's indicated with an asterisk *.

Administrative expenses $165,600 Cost of goods sold 1,113,600 Sales revenue 1,852,800 Selling expenses 208,800 Interest expense 16,800 Loss from operations of discontinued segment 144,000 Flood loss (considered unusual and infrequent) 60,000 Gain on disposal of discontinued segment 96,000 Income taxes: Amount applicable to ordinary operations 139,200 Reduction applicable to loss from operations of discontinued segment 81,600 Amount applicable to gain on disposal of discontinued segment 38,400 Reduction applicable to flood loss 24,000

Explanation / Answer

a) Multiple step income statement is shown as follows:- (Amounts in $)

b) Single step income statement is shown as follows:- (Amounts in $)

TRICON COMPANY
Income Statement
For Year Ended Sales Revenue $1,852,800 Cost of Goods Sold 1,113,600 Gross Profit on Sales 739,200 Selling Expenses $208,800 Administrative Expenses 165,600 374,400 Operating Income 364,800 Interest Expense 16,800 Income from Continuing Operations before Taxes 348,000 Income Tax Expense 139,200 Income from Continuing Operations 208,800 Discontinued Operations Loss from operations of discontinued segment (144,000-81,600) -62,400* Gain on disposal of discontinued segment (96,000-38,400) 57,600 -4,800* Income before Extraordinary Item 204,000 Extraordinary Item Flood Loss ($60,000 - $24,000) -36,000* Net Income $168,000

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