The following is a listing of all of the income statement accounts for Mulberry Street Sportswear as they appear on the adjusted trial balance as of December 31: Advertising Expense $10,200
Cost of Goods Sold 87,900
Delivery Expense 4,300
Insurance Expense 1,400
Income Tax Expense 5,960
Rent Expense 10,700
Interest Expense 1,900
Sales Revenue 160,400
Sales Discounts 10,800
Sales Returns and Allowances 18,300
Required:
Prepare a multi-step income statement.

Mulberry Street Sportswear multi-step income statement for the year ended December 31.

Sales Revenue                                                   160,400

Less Sales Returns and Allowances                 (18,300)

Net Sales                                                             142,100

Less Cost of Goods Sold                                   (87,900)

Gross Profit                                                          54,200

Less Operating Expenses

Sales Discounts                              10,800

Advertising Expense                      10,200

Delivery Expense                             4,300

Insurance Expense                           1,400

Rent Expense                                  10,700      (37,400)

Operating Income                                              16,800

Less Non - Operating Expenses

Interest Expense                              1,900

Income Tax Expense                      5,960         (7,860)

Net Income / (Loss)                                             8,940

Explanation:

A multi-step income statement shows separately profit earned from primary activities of the company (Operating Income) from that which includes  secondary activities of the Company (Net Income).

you have to put the parentheses like this:

in fact, you have to perform the operation inside parentheses first, and then proceed in order: