I need help completing the mulitstep income statement 3. Preparing a single-step...
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I need help completing the mulitstep income statement
3. Preparing a single-step and a multiple-step income statement Aa Aa Income statements can be presented using two formats: a single-step statement and a multiple-step statement. The single-step income statement emphasizes an organization's total revenues and total expenses and uses a single calculation to determine its bottom line (net income). In contrast, the multiple-step income statement groups various revenue and expense accounts and uses several calculations to provide the reader with important subtotals, including the company's gross profit, operating expenses, and earnings before taxes. As a knowledgeable business professional, you'll rarely be able to anticipate which type of income statement you may be required to analyze. For this reason, it is essential that you are familiar with both formats. For example, Stewart Company's end-of-year income statement data is listed in the following table. However, its management team would prefer to see the data organized into both a multiple-step and a single-step income statement. Balance Account Sales salaries expense Advertising expense Depreciation expense Interest revenue Miscellaneous selling expense Office salaries expense $113,600 33,340 21,310 25,730 12,450 101,470 Account Interest expense Cost of goods sold Insurance expense Delivery expense Sales Income tax expense Balance $39,100 828,750 17,650 17,610 1,322,810 40,900
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