Use the following multi-step income statement of Ancho Company to prepare a single-step version. Income Statement For the Year Ended December 31, 2022 Sales Sales revenue $98,000 Less: Sales returns and allowances 2,000 Net sales $96,000 _ 42,000 Cost of goods sold Gross profit Operating expenses 54,000
Use the following multi-step income statement of Ancho Company to prepare a single-step version. Income Statement For the Year Ended December 31, 2022 Sales Sales revenue $98,000 Less: Sales returns and allowances 2,000 Net sales $96,000 _ 42,000 Cost of goods sold Gross profit Operating expenses 54,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hi,
please answer the attached question
BR,
![Q1:
Use the following multi-step income statement of Ancho Company
to prepare a single-step version.
Income Statement
For the Year Ended December 31, 2022
Sales
Sales revenue
$98,000
Less:
Sales returns and allowances
2,000
Net sales
$96,000
Cost of goods sold
Gross profit
Operating expenses
42,000
54,000
14,000
Income from operations
Other revenues and gains
40,000
Interest revenue
1,000
Other expenses and losses
Loss on sale of equipment
500
Net income
$40,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8114040f-e2ef-47b0-a0c9-f714e42189d8%2Fb8f9a093-f564-4fe6-8bd5-a6d82e4937a2%2Fr3opqvq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q1:
Use the following multi-step income statement of Ancho Company
to prepare a single-step version.
Income Statement
For the Year Ended December 31, 2022
Sales
Sales revenue
$98,000
Less:
Sales returns and allowances
2,000
Net sales
$96,000
Cost of goods sold
Gross profit
Operating expenses
42,000
54,000
14,000
Income from operations
Other revenues and gains
40,000
Interest revenue
1,000
Other expenses and losses
Loss on sale of equipment
500
Net income
$40,500
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