1.Use this information to answer the following question Alcorn & Zeto Company In
ID: 2339985 • Letter: 1
Question
1.Use this information to answer the following question Alcorn & Zeto Company Income Statement For the Year Ended December 31, 20x7 Revenues Net sales $104,750 Dividend income 8,750 Total revenues $113,500 Costs and expenses Costs of goods sold S30,000 Selling expenses 10,000 General and administrative expenses 13,750 Interest expense 6,250 Total costs and expenses 60,000 Income before income taxes $53,500 Income taxes 19,500 Net income S 34,000 If the income statement were prepared in a multistep form, income from operations would be A) 51000 B) $43,500 C) $53,500 D) $44,750Explanation / Answer
The correct answer is A i.e. $51,000
Income from Operation = Net Sales – Cost of Goods Sold – Selling Expenses – General and Administrative Expenses
Income from Operation = $104,750 - $30,000 - $10,000 - $13,750
Income from Operation = $51,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.