Progress Presented below is information for Sunland Company for the month of January 2022. Cost of goods sold $278,000 Rent expense $30,000 Freight-out 7,300 Sales discounts 5,300 Insurance expense 12,400 Sales returns and allowances 13,000 Salaries and wages expense 48,000 Sales revenue 432,000 Prepare a multiple-step income statement.

                                         Sunland Company

              Income statement for the year ended December 31, 2020

                                                                              Amount in $'000

Sales                                                                                   432   

Less;

Sales returns and allowances                                           (13)

Sales discounts                                                                 (5.3)

Net Sales                                                                           413.7

Cost of goods sold                                                            (278)

Gross profit                                                                         135.7  

Operating expenses    

Freight-out                                                                           (7.3)

Salaries and wages expense                                              (48)

Rent expense                                                                       (30)

Insurance expense                                                             (12.4)

Net Income/(loss)                                                                 38                        

Explanation:

A multi-step income statement is one in which the elements of  incomes and expenses are grouped into operating and non-operating heads.

Operating income and expenses are those that are directly related to the ordinary activities of the entity

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