Question: The following data for the current year ended April 30 were extracted from the accounting records of Spear Co.: Cost of merchandise sold $225,000 Operating

The following data for the current year ended April 30 were extracted from the accounting records of Spear Co.:

Cost of merchandise sold	$225,000
Operating expenses	75,000
Sales	485,000

Prepare a multiple-step income statement for the year ended April 30, 2007.

$485,000$225,000$260,000$75,000$185,000SalesFees EarnedCost of Merchandise SoldMerchandise InventoryGross ProfitNet IncomeGross IncomeOperating Expenses$560,000$335,000

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