Chapter 17, Problem E17.25E

To determine

Concept Introduction

Income Statement: Income Statement is a financial statement that shows an entity’s revenues and expenses and the resulting net income or net loss for the particular period.

Multi-Step Income Statement: It is an income statement that involves multiple subtractions to compute the net income. It consists of operating and non-operating sections. The gross profit and the operating income (or the income from continuing operations) are the part of the operating section. The income (or loss) from discontinued operations and extraordinary income (or loss) are the part of non-operating section.

To Prepare:

Cloud’s multi-step income statement for 2016.