Presented below is information for Wildhorse Co. for the month of January 2017 Cost of goods sold Freight-out Insurance expense Salaries and wages expense Income tax expense $208,700 Rent expense 9,200 Sales discounts 12,700 Sales returns and allowances 60,700 Sales revenue $33,800 8,400 18,500 396,000 5,500 Other comprehensive income (net of $400 tax) 2,000 Prepare an income statement using the multi-step format.

Answer and Explanation:

The Preparation of income statement using the multi-step format is prepared below:-

                                              Wildhorse Co.

                                          Income statement

                              using the multi-step format

Particulars                                      Amount

Sales                                                 $396,000

Less: Sales discount    $8,400

Less: Sales and return

allowances                    $18,500      $26,900

Net sales                                           $369,100

Less: Cost of goods sold                 $208,700

Gross profit                                        $160,400

Operating expenses

Freight out expenses    $9,200

Insurance expenses      $12,700

Salaries and wages

expenses                        $60,700

Rent expenses                $33,800

Total operating expenses                   $116,400

Income before income taxes              $44,000

Income tax expenses                           $5,500

Net income                                            $38,500

So, to reach at net income we simply deduct the income tax expenses from income before income taxes.

the law, public safety, corrections, and security cluster prepares people for careers in planning, managing, and providing legal, public safety, protective services and homeland security, including professional and technical support services.