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Purpose of Assignment
The purpose of this assignment is to help you become familiar with the parts of the multiple‐step income statement.
Assignment Steps
Resources: Financial Accounting: Tools for Business Decision Making
Scenario: An inexperienced accountant prepared this condensed income statement for Simon Company, a retail firm that has been in business for a number of years.
SIMON COMPANY
Income Statement
For the Year Ended December 31, 2017
Revenues
Net sales
$850,000
Other revenues
22,000
872,000
Cost of goods sold
555,000
Gross profit
317,000
Operating expenses
Selling expenses
109,000
Administrative expenses
103,000
212,000
Net earnings
$105,000
As an experienced, knowledgeable accountant, you review the statement and determine the following facts:
Prepare a detailed multi-step income statement with a brief explanation. Assume a 25% tax rate.
Show your work on the Excel® spreadsheet and submit with your explanation.
Click the Assignment Files tab to submit your assignment.
I am having difficulty in this class and think I understand but earn a bad grade every time. How do I properly write a multi step income statement using this information?
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