The following data for the current year ended December 31, 2016, was extracted from the accounting records of Xender Co.: Cost of merchandis

The following data for the current year ended December 31, 2016, was extracted from the accounting records of Xender Co.: Cost of merchandise sold $937,200 Operating expenses 307,500 Sales 1,230,250 Prepare a multiple-step income statement for the year ended December 31, 2016. Xender Co. Income Statement For the Year Ended December 31, 2016

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  1. Answer:

    income statement are given below

    Explanation:

    given data

    Cost of merchandise sold =  $937,200

    Operating expenses = 307,500

    Sales = 1,230,250

    solution

    income statement are as

    Income Statement for the year ended December 31, 2016

    Sales                                                                      $1,230,250

    Cost of Merchandise Sold                                    $937,200

    Gross Profit                                                            $293050

    Operating expenses                                              $307,500

    net income                                                             -$14450                                                        

    here Gross Profit is Sales  – Cost of Merchandise Sold  

    Gross Profit  = $1,230,250 – $937,200 = $293050

    and

    net income  = Gross Profit – Operating expenses        

    net income   = $293050 – $307,500 = -$14450    

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