Multiple-Step Income Statement and Profit Margin
The following income statement items, arranged in alphabetical order, are taken from the records of Shaw Corporation for the current year:
Advertising expense $1,549
Interest expense $1,397
Commissions expense 2,234
Interest revenue 1,343
Cost of goods sold 29,283
Rent revenue 7,045
Depreciation expense - office building 3,049
Salaries and wages expense-office 11,456
Income tax expense 1,484
Sales revenue 48,131
Insurance expense - salesperson's auto 2,141
Supplies expense-office 803
Required:
Assume that Shaw Corporation classifies all operating expenses into two categories: (1) selling and (2) general and administrative.
Problem 1. Prepare a multiple-step income statement for the current year.