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Preparing a Multiple-Step Income Statement The following data were taken from the records of Township Corporation at December 31, 2012:

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Preparing a Multiple-Step Income Statement

The following data were taken from the records of Township Corporation at December 31, 2012:

Sales revenue                                      $79,000

Gross profit                                          28,000

Selling (distribution) expense              7,000

Administrative expense                        ?

Pretax income                                                  13,000

Income tax rate                                    35%

Shares of stock outstanding                 3,500

Required:

Prepare a complete multiple-step income statement for the company (showing both gross profit and income from operations). Show all computations.


Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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TOWNSHIP CORPORATION Income Statement For the Year Ended December 31 2012 Computations in Order …View the full answer


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Financial Accounting

Financial Accounting

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Question Details
Chapter # 5
Section: Exercises
Problem: 12
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Question Posted: December 12, 2011 07:40:47
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