Escrow Company's multistep income statement shows cost of goods sold of $60,000, a gross margin...
Question:
Escrow Company's multistep income statement shows cost of goods sold of $60,000, a gross margin of $42,000, operating income of $12,000 and a $20,000 loss on the sale of land. Based on this information, the net income or (net loss) amounted to:
a. $12,000.
b. ($20,000).
c. ($8,000).
d. None of the answers is correct.
Multiple-Step Income Statement:
A multiple-step income statement separates the operating revenues and expenses and non-operating revenues and expenses in its presentation. The multiple-step income statement also derives the net income at the bottom line, net income being the difference between the revenues and costs and it clearly shows the gross margin, operating income and non-operating and other revenues.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerAnswer: Option c) ($8,000) is correct.
Explanation:
- As per the information:
- Gross margin = $42,000
- Operating income = $12,000
- Loss on sale of land =...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Operations of an Income Statement
from
Chapter 8 / Lesson 5
6.2K
An income statement demonstrates the company's income and expenses over a given timeframe, used to reflect performance. Learn the operations of income statements in multi vs single-steps and the details of the line items they use.
Related to this Question
- Walter Company's multistep income statement shows cost of goods sold of $60,000, a gross margin of $42,000, operating income of $12,000 and a $20,000 loss on the sale of land. Based on this informatio
- The following is Talley Company's 2010 income statement. Sales revenue $571,300 Cost of goods sold 342,780 Gross margin 228,520 Operating expenses 102,300 Operating income $126,220 (a). What is the m
- Cost of goods sold is shown on the: A. Statement of retained earnings. B. Balance sheet as an asset. C. Income statement before gross profit. D. Income Statement after gross profit.
- If a cost is properly includable in merchandise inventory: a. It remains on the Balance Sheet until the goods are sold. b. It is reflected as an Operating Expense on the Income Statement when the goods are sold. c. It will have no effect on Gross Profit w
- The income statement for a merchandising company shows each of these features except: A. gross profit. B. cost of goods sold. C. a sales revenue section. D. All of these are present.
- Operating expenses: $54,000 Sales returns and allowances: $2,000 Sales discounts: $9,000 Sales revenue: $158,000 Cost of goods sold: $92,000 Gross Profit would be: a. $55,000. b. $68,000. c. $66,000. d. $64,000.
- Operating expenses $ 22000 Sales returns and allowances 5000 Sales discounts 5000 Sales revenue 150000 Cost of goods sold 108000 The gross profit rate would be A) 0.21. B) 0.26. C) 0.23. D) 0.75.
- Operating expenses $ 59000 Sales returns and allowances 2000 Sales discounts 9000 Sales revenue 194000 Cost of goods sold 102000 Gross Profit would be a. $92000. b. $90000. c. $81000. d. $94000.
- Operating expenses $38,000 Sales returns and allowances $2,000 Sales discounts $5,000 Sales revenue $140,000 Cost of goods sold $86,000 Calculate the gross profit.
- A company shows the following balances: Sales Revenue $1,000,000 Sales Returns and Allowances 175,000 Sales Discounts 25,000 Cost of Goods Sold 560,000 What is the gross profit rate? a. 56% b. 70% c. 44% d. 30%
- The Frame It Company reporting the following items on its income statement in 2009: a. Net operating revenues: $814,250 b. Cost of goods sold: $305,908
- The income statements of Keagle Company for 20X3 and 20X4 follow. 20X3 20X4 Sales $100,000 $109,000 Cost of Goods Sold $62,000 $74,000 Gross Profit $38,000 $35,000 Expenses $26,000 $22,000 Net Income
- The income statement of the Guesser Company is shown below. Particulars Amount Amount Sales $755,000 Cost of goods sold $43,000 Gross profit $212,000 Operating expenses: Selling expenses $52,000 Administrative expenses $89,000 $141,000 Net income $71,00
- Presented below are the components in Gates Company's income statement. Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Net Income a. $75,000 ? $30,000 ? $10,800 b. $108,000 $70,000 ? ? $29,500 c. ? $83,900 $79,600 $39,500 ? Determine the
- The cost of goods sold is subtracted from sales to arrive at: a. Gross profit. b. Net sales. c. Fees earned. d. Operating income.
- The following is Talley Company's income statement for the past year. Sales revenue $540,000 Cost of goods sold 324,000 Gross margin 216,000 Operating expenses 126,000 Operating income $90,000 1) What is the mark-up percentage on the cost of goods sold?
- A company shows the following balances: Cost of goods sold $900,000 Sales 2,000,000 Sales discounts 25,000 Sales returns and allowances 225,000 What is the gross profit margin? a. 49.3% b. 48.6% c. 55.0% d. 42.5%
- Operating expenses: $27,000 Sales revenue: $235,000 Cost of goods sold: $161,000 The profit margin ratio would be: a. 0.69. b. 0.31. c. 0.80. d. 0.20.
- Gross profit for a merchandising company is net sales minus a. operating expenses. b. cost of goods sold. c. sales discounts. d. cost of goods available for sale.
- If sales revenues are $450,000, cost of goods sold is $340,000, and operating expenses are $80,000, what is the gross profit?
- If sales revenues are $400, cost of goods sold is $310, and operating expenses are $60, what is the gross profit?
- If sales revenues are $200,000, the cost of goods sold is $155,000, and operating expenses are $30,000, what is the gross profit? a. $15,000 b. $45,000 c. $75,000 d. $185,000
- On a multi-step income statement, the operating expenses are subtracted from [{Blank}] to arrive at operating income. A) net sales B) cost of goods sold C) net profit D) gross profit
- A company shows the following balances: Sales Revenue $1,000,000 Sales Returns and Allowances 175,000 Sales Discounts 25,000 Cost of Goods Sold 600,000 What is the gross profit rate? a. 60% b. 75% c. 40% d. 25%
- A company has net sales of $770,300 and cost of goods sold of $556,300. Its net income is $21,910. The company's gross margin and operating expenses, respectively,
- A company has net sales and cost of goods sold of $825,000 and $547,000, respectively. Its net income is $98,500. The company's gross margin and operating expenses are _____ and _____, respectively.
- A company has net sales of $752,000 and a cost of goods sold of $543,000. Its net income is $17,530. The company's gross margin and operating expenses, respectively, are: A. $209,000 and $191,470 B. $191,470 and $209,000 C. $525,470 and $227,000 D. $227,0
- A company has net sales of $755,700 and a cost of goods sold of $545,700. Its net income is $18,410. The company's gross margin and operating expenses, respectively, are: a. $228,880 and $527,290. b. $210,000 and $228,880. c. $736,820 and $191,590. d. $52
- A Manufacturing has prepared the following income statement: Sales 450,000 COGS 200,000 Gross Margin 250,000 Operating Expenses 196,000 Operating Income 54,000 According to company records, $50,000 of the Cost of Goods Sold and $166,000 of Operating Expe
- Presented here are the components in Cullumber Company's income statement. Determine the missing amounts. Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Net Income Year 1 $71,000 $(b) $30,000 $(d) $10,810 Year 2 $108,100 $70,100 $(c) $(
- A company shows the following balances. What is the gross profit percentage? Sales = $1,000,000 Sales Returns and Allowances = $180,000 Sales Discounts = $20,000 Cost of Goods Sold = $560,000
- Operating expenses $28,000 Sales revenue 184,000 Cost of goods sold 127,000 Calculate the profit margin ratio.
- Merchandise costing $2,100 is sold for $3,100 on terms 1/10, n/30. If the buyer pays within the discount period, what amount will be reported on the income statement as net sales and as gross profit?
- Merchandise costing $1,400 is sold for $2,400 on terms 2/10, n/30. If the buyer pays within the discount period, what amount will be reported on the income statement as net sales and as gross profit?
- Merchandise costing $2,500 is sold for $3,500 on terms 1/10, n/30. If the buyer pays within the discount period, what amount will be reported on the income statement as net sales and as gross profit?
- Prig Company had $820,000 in sales, sales discounts of $12,300, sales returns and allowances of $18,450, cost of goods sold of $389,500, and $282,080 in operating expenses. Net income equals $117,670 $179,170 $143,420. $789,250 $399,750
- A company shows the following balances: Sales Revenue $2,500,000 Sales Returns and Allowances 450,000 Sales Discounts 50,000 Cost of Goods Sold 1,400,000 What is the gross profit percentage? A) 70%
- Gross profit is calculated as the difference between net sales revenue and: a) purchase expense b) cost of goods sold c) cost of merchandise inventory d) operating expenses
- Financial information is presented below: Operating expenses $50,000 Sales returns and allowances 3,000 Sales discounts 5,000 Sales revenue 184,000 Cost of goods sold 98,000 Gross Profit would be: a. $78,000. b. $89,000. c. $86,000. d. $83,000.
- Financial information is presented below: Operating expenses $ 35,000 Sales returns and allowances 12,000 Sales discounts 3,000 Sales revenue 140,000 Cost of goods sold 85,000 Gross profit would be a. $40,000. b. $43,000. c. $55,000. d. $52,000.
- Financial information is presented below: Operating expenses $42,000 Sales returns and allowances 3000 Sales discounts 8000 Sales revenue 140,000 Cost of goods sold 98,000 Gross Profit would be: a) $31,000. b) $45,000. c) $42,000. d) $39,000.
- Financial information is presented below: Operating expenses $ 45,000 Sales returns and allowances 14,000 Sales discounts 6,000 Sales revenue 160,000 Cost of goods sold 90,000 Gross profit would be a. $90,000. b. $70,000. c. $60,000. d. $66,000.
- Financial information is presented below: Operating expenses = $59,000 Sales returns and allowances = 2,000 Sales discounts = 9,000 Sales revenue = 194,000 Cost of goods sold = 102,000 What is the gross profit?
- Financial information is presented below: Operating expenses $50,000 Sales returns and allowances 4,000 Sales discounts 7,000 Sales revenue 160,000 Cost of goods sold 94,000 Gross Profit would be: (A) $70,000. (B) $55,000. (C) $62,000. (D) $66,0
- Financial information is presented below: Operating expenses $28,000 Sales returns and allowances 7,000 Sales discounts 3,000 Sales revenue 150,000 Cost of goods sold 91,000 Gross profit would be what?
- Financial information is presented below: Operating expenses $60,000 Sales returns and allowances 2,000 Sales discounts 6,000 Sales revenue 140,000 Cost of goods sold 106,000 Gross Profit would be: a. $32,000. b. $34,000. c. $26,000. d. $36,000.
- Which one of the following accounts most likely would appear on the income statement of a merchandise company, but not on the income statement of a service company? a. Cost of Goods Sold b. Selling Expenses c. Administrative Expenses d. Income Tax Exp
- The following information was drawn from the annual reports of two companies. Company A Company B Sales revenue $1,000 $2,000 Cost of goods sold (600) (1,100) Gross margin 400 900 Operating expenses (220) (700) Operating income 180 200 Gain on sale of equ
- Gross profit will result if: (a) operating expenses are less than net income. (b) sales revenues are greater than operating expenses. (c) sales revenues are greater than cost of goods sold. (d) operating expenses are greater than cost of goods sold.
- Presented below is a combined single-step income and retained earnings statement for Nerwin Company for 2014. Net sales revenue $640,000 Costs and expenses Costs of goods sold $500,00 Selling, gener
- A company has net sales of $125,000, cost of goods sold of $50,000, operating expenses of $35,000, and selling expenses of $11,000. What is the gross profit? A. $75,000 B. $40,000 C. $29,000 D. $50,000
- A company has net sales of $200,000, cost of goods sold of $120,000, selling expenses of $6,000, and non-operating expenses of $2,000. What is the company's gross profit?
- Financial information is presented below: Operating expenses = $23,000 Sales returns and allowances = 9,000 Sales discounts = 4,000 Sales revenue = 174,000 Cost of goods sold = 99,000 What is the gross profit rate?
- Financial information is presented below: Operating expenses $ 23,000 Sales returns and allowances 9,000 Sales discounts 3,000 Sales revenue 152,000 Cost of goods sold 88,000 The gross profit rate would be: a. 0.64. b. 0.34. c. 0.44. d. 0.37.
- Financial information is presented below: Operating expenses $30,000 Sales returns and allowances 6,000 Sales discounts 5,000 Sales revenue 168,000 Cost of goods sold 97,000 The gross profit rate would be: a. 0.42. b. 0.38. c. 0.36. d. 0.61.
- Financial information is presented below: Operating expenses $ 28,000 Sales returns and allowances 7,000 Sales discounts 3,000 Sales revenue 150,000 Cost of goods sold 91,000 The gross profit rate would be a. .33. b. .35. c. .65. d. .27.
- Financial information is presented below: Operating expenses $39,000 Sales returns and allowances 4000 Sales discounts 9000 Sales revenue 148,000 Cost of goods sold 111,000 The gross profit rate would be: a) 0.18. b) 0.82. c) 0.25. d) 0.16.
- Financial information is presented below: Operating expenses $35,000 Sales returns and allowances 7,000 Sales discounts 4,000 Sales revenue 186,000 Cost of goods sold 106,000 The gross profit rate would be: a. 0.37. b. 0.43. c. 0.61. d. 0.39.
- Financial information is presented below: Operating expenses $23,000 Sales returns and allowances 5,000 Sales discounts 3,000 Sales revenue 148,000 Cost of goods sold 102,000 The gross profit rate would be: (A) 0.72. (B) 0.27. (C) 0.26. (D) 0.31
- Which expenses are subtracted from gross profit to arrive at income from operations? a. All expenses b. Cost of merchandise sold c. Operating expenses d. Sales expenses
- Zowine Company's condensed income statement for the year ended December 31, 20-2, was as follows: Net sales $765,000 Cost of goods sold 550,000 Gross profit 215,000 Operating expenses 30,000 Income b
- The Hot Aire Company reported the following items on its income statement for 2007. a. Net operating revenues, $956,000. b. Cost of goods sold, $312,000. c. Selling and administrative expenses, $245,000. d. Research and development expenses, $122,000.
- Financial information is presented below: Operating Expenses $35,000 Sales Returns and Allowances $12,000 Sales Discount $3,000 Sales Revenue $140,000 Cost of Goods Sold $67,000 Gross Profit would be: a. $61,000 b. $58,000 c. $73,000 d. $70,000
- The Grant Company reported the following income for 2014: Sales $146,000 Cost of goods sold $88,000 Gross margin $58,000 Selling and administrative expense $31,000 Operating income $27,000 Interest expense $6,600 Income before taxes $20,400 Income tax exp
- Presented here are the components in Sandhill Co.'s income statement. Determine the missing amounts. Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Net Income Year 1 $76,050 $(b) $32,700 $(d) $14,130 Year 2 $111,100 $74,400 $(c) $(e) $30
- If a company reported the following items on its income statement (cost of goods sold $5,000, income tax expense $2,000, interest expense $500, operating expenses $3,500, sales revenue $14,000), what amount would be reported for the subtotal income from o
- Financial statements for Askew Industries for 2013 are shown below: 2013 Income Statement ($ in 000s) Sales $9,200 Cost of goods sold (6,350) Gross profit 2,850 Operating expenses (2,050) Interest exp
- A company has a net sales of $100,000, cost of goods sold of $70,000, and operating expenses of $18,000. What is its gross profit for this company
- Presented below are the components in Veasy Company's income statement. Determine the missing amounts. Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Net Income (a) $75,000 _ _
- Financial information is presented below: Operating expenses $35,000 Sales returns and allowances 12,000 Sales discounts 3,000 Sales revenue 140, 000 Cost of goods sold 85,000 The profit margin would be: a. .32 b. .16 c. .03 d. .04
- Financial information is presented below: Operating expenses $ 28,000 Sales returns and allowances 7,000 Sales discounts 3,000 Sales revenue 150,000 Cost of goods sold 91,000 The profit margin would be a. .21. b. .14. c. .35. d. .15.
- Bloom Corporation had the following 2014 income statement. Sales revenue $207,890 Cost of goods sold $118,480 Gross profit $89,410 Operating expenses (includes depreciation of $23,850) $49,130 Net income $40,280 The following accounts increased during 201
- Financial information is presented below: Operating expenses $24,000; Sales returns and allowances 6,000; Sales discounts 4,000; Sales revenue 154,000; Cost of goods sold 92,000. The gross profit rate would be: (blank).
- Cost of Goods Sold is: a) an expense recorded when inventory is sold. b) an expense associated with both buying and selling inventory. c) a contra-revenue account that reduces net sales on the income statement. d) an operating expense on the income statem
- Financial information is presented below: Operating Expenses $21000 Sales Returns and Allowances $7000 Sales Discount $3000 Sales Revenue $150,000 Cost of Goods sold $105,000 The profit margin rate would be [{Blank}].
- Financial information is presented below: Operating expenses $63000 Sales returns and allowances 5000 Sales discounts 5000 Sales revenue 176000 Cost of goods sold 109000 Gross Profit would be: A. $67000. B. $62000. C. $57000. D. $72000.
- Gross profit does not appear a. on a multiple-step income statement. b. on a single-step income statement. c. to be relevant in analyzing the operation of a merchandising company. d. on either a multiple-step or single-step income statement.
- Financial information is presented below: Operating expenses = $45,000 Sales returns and allowances = $13,000 Sales discounts = $6,000 Sales = $160,000 Cost of goods sold = $77,000 Gross profit would be: a. $77,000 b. $64,000 c. $70,000 d. $83,000
- Financial information is presented below: Operating expenses $21000 Sales returns and allowances 7000 Sales discounts 3000 Sales revenue 168000 Cost of goods sold 99000 The gross profit rate would be A. 0.42. B. 0.63. C. 0.37. D. 0.35.
- The following is true if land is sold except: a. The gain on the sale of land used in a business is recorded on Form 4797. b. The gain on the sale of land used in a business is recorded on Schedule D. c. The gain on the sale of land used in a business
- Brueser company has the following account balances: Sales Revenue $195,000, Sales Discount $2000, Cost of Goods Sold $117,000, and Inventory $40,000, prepare the entries to record the closing of these items to Income Summary.
- Financial information is presented below: Operating expenses = $55,000 Sales returns and allowances = $3,000 Sales discounts = $9,000 Sales revenue = $200,000 Cost of goods sold = $87,000 What is the profit margin ratio?
- State the missing items. 1. Gross profit - Operating expenses = 2. Cost of goods sold + Gross profit = 3. Sales revenue - - = Net sales 4. Income from operations + - = Net income 5. Net sales - Cost o
- Financial information is presented below: Operating expenses = $53,000 Sales returns and allowances = $5,000 Sales discounts = $9,000 Sales revenue = $206,000 Cost of goods sold = $103,000 Gross Profit would be: a. $98,000 b. $108,000 c. $103,000 d.
- The income statement of Munsun Company is presented here. MUNSUN COMPANY Income Statement For the Year Ended November 30, 2017 Sales revenue $7,600,000 Cost of goods sold Beginning inventory $1,900,000 Purchases 4,400,000 Goods available for sale 6,300,
- What is the cost of goods available allocated to? a) Beginning inventory and purchases b) Cost of goods sold reported on the income statement and ending inventory reported on the balance sheet c) Gross profit sold profited on the income statement and e
- Operating profit margin equals: a. Income from operations / sales b. Net income / sales c. Gross profit / sales d. Profit from operations / cost of sales
- Deighan Company had the following amounts from its income statement: Sales revenue (800 units) $80,000 Cost of goods sold-Fixed $20,000 Cost of goods sold-Variable $18,500 Selling expenses-Fixed $7,000 Selling expenses-Variable $6,000 Administrative expen
- Income Statement Data: This year Revenue $150,000 Cost of Goods Sold $90,000 Operating Income $10,000 Income Tax Expense $1,800 Last year Revenue $120,000 Cost of Goods Sold $60,000 Operating Income
- Given that sales Revenue: 460,000. Cost of goods sold 300,000. operating expenses 85,000. sales discounts 20,000. Sales returns and allowances: 15,000. Interest revenue: 5,000. 1) What is net sales revenue? 2) Assume net sales revenue is 450,000. What i
- Financial information is presented below: Operating Expenses $92,800 Sales Returns and Allowances 18,000 Sales Discounts 12,000 Sales Revenue 350,000 Cost of Goods Sold 176,000 Gross profit would be: A) $51,200 B) $156,000 C) $144,000 D) $174,000
- Brueser Company has the following account balances: Sales revenue $211,400 Sales discounts $4,310 Cost of goods sold $138,600 Inventory $43,900 Prepare the entries to record the closing of these items in the Income Summary.
- Cupery Co. has sales revenue of $132,000, cost of goods sold of $80,000, and operating expenses of $28,000. What are its gross profit and its gross profit rate?
- Cupery Co. has sales revenue of $147,000, cost of goods sold of $60,000, and operating expenses of $24,000. What are its gross profit and gross profit rate?
- During 2010, Yoder Enterprises generated revenues of $60,000. The company's expenses were as follows: cost of goods sold of $30,000, operating expenses of $12,000, and a loss on the sale of equipment of $2,000. Yoder's income from operations is: a. $60,
- Financial information is presented below: Operating expenses = $31,000 Sales returns and allowances $9,000 Sales discounts = $5,000 Sales revenue = $162,000 Cost of goods sold = $108,000 The gross profit rate would be: a. 0.33 b. 0.25 c. 0.27 d. 0.
- Shown here is an income statement in the traditional format for a firm with a sales volume of 20,000 units. Cost formulas also are shown: Revenues $200,000 Cost of goods sold ($36,000 + $5.20/unit) 140,000 Gross profit $60,000 Operating expenses: Selling
- A company has net sales of $854,400 and cost of goods sold of $564,200. Its net income is $102,800. Calculate the company's gross margin and operating expenses.
- Assume Kader Company has the following reported amounts: Sales revenue $816,000, Sales returns and allowances $24,000, Cost of goods sold $528,000, and Operating expenses $176,000. Compute Gross Profit, Income from Operations and Gross Profit Rate.
- Financial information is presented below: Operating expenses $ 45,000 Sales returns and allowances 4,000 Sales discounts 6,000 Sales revenue 160,000 Cost of goods sold 90,000 The amount of net sales on the income statement would be a. $154,000. b. $150,00
Explore our homework questions and answers library
Browse
by subject