Prepare a multiple-step income statement for ayayai

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Reference no: EM133104648

Question - Ayayai Corporation had net sales revenue of $5,820,000 and investment revenue of $227,000 for the year ended December 31, 2020. Other items pertaining to 2020 were as follows:

Cost of goods sold

$4,590,000

Salaries and wages expense (sales)

360,000

Advertising expense

129,000

Entertainment expense

82,000

Selling expenses

571,000



Salaries and wages expense (administrative)

309,000

Rent expense

101,000

Utilities expense

44,000

Administrative expenses

454,000



Increase in value of company reputation

75,000

Unrealized gain on value of patents

38,000

Interest expense

167,000

Income tax expense

88,000

Ayayai has 100,000 common shares outstanding throughout the year.

Required - Prepare a multiple-step income statement for Ayayai Corporation, showing expenses by function. Include calculation of EPS.

Reference no: EM133104648

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