E4-5

Singh Corp.
Income Statement (Multi-step)
23-Jan-11
Revenue
Sales 306,500
Rental Revenue 15,230
Total Revenue ###

Cost of Goods Sold

Merchadise, January 2010
Purchases
Total merchandise available for sale
Less: merchandise, December 2010
Cost of Goods Sold 58,570

Gross Profit ###

Operating Expenses
Administraton Expenses
Officers' salaries 3,900
Amortization of office furniture and equipment 3,560
Rent 16,200 23,660

Selling Expenses
Transportation-out 2,290
Sales commissions and wages 67,280
Amortization of sales equipment 6,480
Advertising and promotion 42,500 ###
Total Operating expenses ###
Income from operations ###

Other Expenses
Interest expense on bonds payable 1,860

Net Income before income tax ###

Income tax 9,070

Net income ###

Earnings Per Share 4

 Singh Corp.
Income Statement (Single-step)
###
Revenue
Sales 306,500
Rental Revenue 15,230
Total Revenue 321,730

Expenses
Cost of Goods Sold 58,570
Administration expenses 23,660
Selling expenses 118,550
Interest expense on bonds payable 1,860
Income tax expense 9,070 211,710

Net Income 110,020

Earnings per share, 30,550,000 common shares outstanding4

I prefer the multi-step income statement because it is way more detailed, allowing users to
accurately make decisions with as much details as possible.
ng users to