ACCT 301 Exam 2 - Multiple-Step Income Statement

Year is

For the year (period) ended

1

Sales revenue (net).

2

Cost of Goods Sold is subtracted.

3

Gross profit is found after COGS is subtracted from sales revenue.

4

Operating expenses.

Operating expenses are made up of

Selling expense, general and administrative expense, research and development expense, and restructuring costs.

5

Operating income is found by subtracting total operating expenses from gross profit.

6

Other income (expense).

Other income (expense) is made up of

Interest revenue, gain on sale of investment, dividend revenue, interest expense (subtracted), loss on sale of investment (expense), and loss on disposal of assets (expense).

7

Income from continuing operations before income tax expense. Found by subtracting total other income (expense) from operating income.

8

Income tax expense.

9

Income from continuing operations. Found after subtracting income tax expense from income from continuing operations before Income Tax Expense.

10

Discontinued operations.

Discontinued operations are made up of

Loss or income from operations of discontinued component (including gain or loss on disposal of $___) and income tax benefit.

11

Loss on discontinued operations. Total amount from discontinued operations.

12

Net income (Loss). Found after subtracting loss on discontinued operations from income from continuing operations.

Earnings per common share – Basic

Income from continuing operations subtracted by discontinued operations to get net income.

If there is a loss from operations of discontinued component

There is an income tax benefit (added) listed below it on discontinued operations.

If there is a gain from operations of a discontinued component

There is an income tax expense (subtracted) listed below it on discontinued operations.