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Olle

Elle Company's multi-step income statement for the year ended December 31, 201A shows sales of $470,000 with cost of goods sold of $256,000, resulting in a gross profit of $214,000. Total operating expenses were $131,000, including selling expenses of $78,000 and administrative expenses of $53,000. This resulted in operating income of $125,000. After subtracting $4,000 of interest expense, the net income was $121,000.

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G & E Apparel
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25 views1 page

Olle

Elle Company's multi-step income statement for the year ended December 31, 201A shows sales of $470,000 with cost of goods sold of $256,000, resulting in a gross profit of $214,000. Total operating expenses were $131,000, including selling expenses of $78,000 and administrative expenses of $53,000. This resulted in operating income of $125,000. After subtracting $4,000 of interest expense, the net income was $121,000.

Uploaded by

G & E Apparel
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
Download as xlsx, pdf, or txt
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ELLE COMPANY

Multi-Step Income Statement


For the Year Ended December 31, 201A
(Amount P)
Sales 475,000
Sales Return (5,000) 470,000
Less: COGS: Purchase 220,000
Purchase Return - 3,000 - 217,000
Change in Inventories 3,000
Total 256,000

Operating Expenses
Less: Selling Expenses
Advertisement Expenses 10,000
Sales Salaries 30,000
Commission Expense 15,000
Miscellaneous Selling Expense 3,000
Uncollectible Account Expense 20,000 78,000

Less: Administrative Expense


Rent 15,000
Office Salaries 20,000
Light and Water 2,000
Insurance Expense 1,000
Taxes and Licenses 5,000
Depreciation Expense 10,000 53,000

Operating Income 125,000


Less: Non-operating Expense
Interest Expense 4,000
Net Income 121,000

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