Marigold Corporation had net sales of $2,423,800 and interest revenue of $36,500 during 2020. Expenses for 2020 were cost of goods sold $1,458,000, administrative expenses $217,800, selling expenses $291,500, and interest expense $48,800. Marigold’s tax rate is 30%. The corporation had 108,300 shares of common stock authorized and 73,470 shares issued and outstanding during 2020. Prepare a condensed multiple-step income statement for Marigold Corporation.

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hamzatauseef hamzatauseef · Answer 1 · 2019-12-12T08:15:35+01:00

Answer:

See Extract

Explanation:

Here is an extract for the income statement.

Sales $2,423,800

Less: Cost of goods ($1,458,000)

Gross Profits $965,800

Less: Other expenses

Admin expense ($217,800)

Selling expense ($291,500)

Operating Profits $456,500

Add: Interest Income $36,500

Profit before Interest and Tax $493,000

Less: Interest Payable ($48,800)

Income before Tax $444,200

Less: Tax @ 30% of (444200) ($133,260)

Profit After tax/

For Appropriation $310,940

There is no need to add dividend entry as nothing is declared yet.

Hope that helps.