Photographic Supplies, Inc.'s accounting records include the following for 2016: Income Tax-Saving Extraordinary Loss $8,000 Sales 575,000
Income Tax-Saving_Loss on Operating expense
(Including Income Tax) 100,000
Discontinued Expense 9,600
Extraordinary Loss 20,000 Cost of Goods Sold 245,000
Loss on Discontinued Operations 24,000
Required:
Prepare Click's multi-step income statement for 2016. Omit earnings per share.

Answer and Explanation:

The preparation of the multi-step income statement for the year is presented below:

                                         Photographic Supplies, Inc.

                                               Income statement

                                   Year Ended December 31, 2016

Sales revenue                 $575,000

Less: Cost of goods sold -$245,000

Gross profit                         $330,000

Less: Operating expenses -$100,000

Income from continuing operations$230,000

Less: Loss on discontinued operations -$24,000

Discontinued expenses                          $9,600

Income before extraordinary item$215,600

Less: Extraordinary loss                        -$20,000

income tax savings                                 $8,000

Net income$203,600