preparing a multiple-step income statement
Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!
step 1
prepare a heading that includes the name of the company, the title of the financial statement, and the time period covered
step 2
compute gross profit as the difference between net sales and cost of goods sold
step 4
compute income before income taxes by subtracting nonoperating activities from income from operations
step 3
compute income from operations by subtracting operating expenses from gross profits
step 5
compute net income (or net loss) by subtracting income taxes expense from income before income taxes. double underline net income.