Washington Company has the following account balances, extracted from its multiple-step income statement for the current year. Compute the missing amounts.
Sales = $105,100
Sales Returns and Allowances = ?
Sales Discounts = 4,700
Net Sales = ?
Cost of Goods Sold = 61,100
Gross Profit = 36,800
Selling Expenses = ?
General and Administrative Expenses = 8,700
Total Operating Expenses = 20,600
Net Income = ?
The income statement for a given firm is one of the four financial statements for a given financial period, others being the balance sheet, the cash flow statement and the statement of change in the shareholders' equity. It is usually prepared in the form of a single-step statement or a multi-step statement.
Answer and Explanation:
The net sales amount is given by:
- = Gross Profit + cost of goods sold
- = $36,800 + $61,100
- = $97,900
The sales returns and allowances is given by:
- = Sales - net sales - sales discounts
- = $105,100 - $97,900 - $4,700
- = $2,500
The selling expenses is given by:
- = Total operating expenses - general and administrative expenses
- = $20,600 - $8,700
- = $11,900
The net income is given by:
- = Gross profit - total operating expenses
- = $36,800 - $20,600
- = $16,200
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from Accounting 201: Intermediate Accounting IChapter 5 / Lesson 6