X. Bonds Company The following is a single-step income statement for the X. Bonds Company: X. Bonds Company Income...

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X. Bonds Company
The following is a single-step income statement for the X. BondsCompany:
X. Bonds Company
Income Statement
For the Year Ended December 31, 2016
Revenues:
Net Sales $300,000
Interest Income 20,000
Total Revenues $320,000
Expenses:
Cost of Goods Sold $60,000
Selling Expenses 25,000
General and Administrative Expenses 30,000
Interest Expense 14,000
Income Tax Expense 45,000
Total Expenses 174,000
Net Income $146,000

Refer to X. Bonds Company. If the income statement were prepared ina multiple-step format, income from operations would be:
a.$126,000.
b.$146,000.
c.$185,000.
d.$171,000.

Answer & Explanation Solved by verified expert

4.4 Ratings (949 Votes)

Net Sales                                                $300,000
- Cost of Goods Sold                              $ 60,000
Gross profit                                               $240000
- Selling Expenses                                   $25,000
- General and Administrative Expenses    $30,000
Operating profit                                          $185000

So correct option is C.

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X. Bonds Company Income Statement For the Year Ended December 31, 2016
Revenues:
Net Sales	$300,000
Interest Income	20,000
Total Revenues		$320,000
Expenses:
Cost of Goods Sold	$60,000
Selling Expenses	25,000
General and Administrative Expenses	30,000
Interest Expense	14,000
Income Tax Expense	45,000
Total Expenses		174,000
Net Income		$146,000