Shown below is an income statement prepared by a poorly trained bookkeeper.

Assume an income tax rate of 30% on all items. Ignore EPS.

ABC Company Income Statement December 31, 20x1
Sales Revenue	$1,192,375
Investment Revenue	9,250
Cost of goods sold	(340,375)
Selling + Administrative	(563,250)
Interest expenses	(13,000)
Loss on Building (Fire Damage)	(80,000)
Loss on disposal of business segment	(32,500)
NI	120,750

Prepare a multiple-step income statement in good form. Then answer the questions pertaining to the statement.

XYZ, Inc
Income Statement
December 31, 20x1
Sales Revenue
Cost of Goods Sold
Gross Profit/Margin
Selling and Administrative Expenses
Income from Operations
Other Revenue:
Investment Revenue
Total Other Revenue
Other Expenses:
Interest expense
Loss on building (Fire Damage)
Total Other Expenses
Income from Continuing Operations before Tax
Income Taxes
Income from Continuing Operations
Discontinued Operations:
Loss on Disposal of Business Segment (net of tax of $12,000)
NI

Question 19 options:

What is Total Expenses? What is Gross Profit/Margin? What is Total Revenue? 123456789 What is the amount reported for Discontinued Operations and does the presentation differ among the single and multi-step format? What is the amount of Net Income and does it differ among the single and multi-step format?

1. $836,625 2. $852,000 3. $1,201,625 4. It is not displayed. 5. Loss of $22,750 and yes, it differs. 6. Loss of $22,750 and no it does not differ. 7. $120,750 and yes, it differs. 8. $120,750 and no it does not differ. 9. Cannot be determined