MMT Corporation reports the following income statement items ($ in millions) for the year ended December 31, 2024: sales revenue, $2,190; cost of goods sold, $1,420; selling expense, $205; general and administrative expense, $195; interest expense, $65; and gain on sale of investments, $115. Income tax expense has not yet been recorded. The income tax rate is 25%. Required: Prepare a multiple-step income statement. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). MMT CORPORATION Income Statement For the Year Ended December 31, 2024 Sales revenue Gain on sale of investments Gross profit Operating expenses: Cost of goods sold General and administrative expenses Selling expense Interest expense Total operating expenses Operating income Other income (expense): Total other income, net Income before income taxes Net income $ 1,420 195 205 65 $ 2,190 115 2,305 1,885

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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MMT Corporation reports the following income statement items ($ in millions) for the year ended December 31, 2024: sales revenue,
$2,190; cost of goods sold, $1,420; selling expense, $205; general and administrative expense, $195; interest expense, $65; and gain
on sale of investments, $115. Income tax expense has not yet been recorded. The income tax rate is 25%.
Required:
Prepare a multiple-step income statement.
Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
MMT CORPORATION
Income Statement
For the Year Ended December 31, 2024
Sales revenue
Gain on sale of investments
Gross profit
Operating expenses:
Cost of goods sold
General and administrative expenses
Selling expense
Interest expense
Total operating expenses
Operating income
Other income (expense):
Total other income, net
Income before income taxes
Net income
$
1,420
195
205
65
$
2,190
115
2,305
1,885
Transcribed Image Text:MMT Corporation reports the following income statement items ($ in millions) for the year ended December 31, 2024: sales revenue, $2,190; cost of goods sold, $1,420; selling expense, $205; general and administrative expense, $195; interest expense, $65; and gain on sale of investments, $115. Income tax expense has not yet been recorded. The income tax rate is 25%. Required: Prepare a multiple-step income statement. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). MMT CORPORATION Income Statement For the Year Ended December 31, 2024 Sales revenue Gain on sale of investments Gross profit Operating expenses: Cost of goods sold General and administrative expenses Selling expense Interest expense Total operating expenses Operating income Other income (expense): Total other income, net Income before income taxes Net income $ 1,420 195 205 65 $ 2,190 115 2,305 1,885
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