Antonio's Italian Restaurant believes they have done well in their second year of operation. They are...

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Antonio's Italian Restaurant believes they have done well in their second year of operation. They are thinking it is time to open another location. They read in an industry trade journal that a successful restaurant will maintain a 60% gross profit and have net income of $100,000. Antonio's believes they have met this criteria and ask you for advice on the expansion. They give you the following income statement for your review. You point out that the statement has errors. Antonio's assures you the numbers are correct but they may be listed in the wrong place. Antonio's Italian Restaurant Income Statement Year Ended December 31, 20XX Net Sales Revenue Gain on Sale of Land Total Revenue Cost of Goods Sold Gross Profit Operating Expenses: $ 195,000 34,600 229,600 85,200 144,400 Salaries Expense Interest Expense Depreciation Expense Utilities Expense Total Operating Expense Income from Operations Other Income: Sales Discounts Forfeited Net Income Requirement: 40,600 1,000 1800 6700 50,100 94,300 5,700 $ 100,000 Prepare a MULTI-STEP INCOME STATEMENT and make your recommendation to Antonio's. Make sure you use the new headings discussed in this chapter (Other Income and (Expenses) and Operating Income). Base your recommendation on the total amount of Income from Operations and the correct gross profit%. Antonio's Italian Restaurant believes they have done well in their second year of operation. They are thinking it is time to open another location. They read in an industry trade journal that a successful restaurant will maintain a 60% gross profit and have net income of $100,000. Antonio's believes they have met this criteria and ask you for advice on the expansion. They give you the following income statement for your review. You point out that the statement has errors. Antonio's assures you the numbers are correct but they may be listed in the wrong place. Antonio's Italian Restaurant Income Statement Year Ended December 31, 20XX Net Sales Revenue Gain on Sale of Land Total Revenue Cost of Goods Sold Gross Profit Operating Expenses: $ 195,000 34,600 229,600 85,200 144,400 Salaries Expense Interest Expense Depreciation Expense Utilities Expense Total Operating Expense Income from Operations Other Income: Sales Discounts Forfeited Net Income Requirement: 40,600 1,000 1800 6700 50,100 94,300 5,700 $ 100,000 Prepare a MULTI-STEP INCOME STATEMENT and make your recommendation to Antonio's. Make sure you use the new headings discussed in this chapter (Other Income and (Expenses) and Operating Income). Base your recommendation on the total amount of Income from Operations and the correct gross profit%.

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Answer multi step income statement for the year ended dec 31 amt in net sales revenue less cost of g... View the full answer