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Formatted income statement for Sammy Co.

Prepare an Income Statement. The following information is available
from the accounting records of Sammy Co. for the year ended December 31, 2004:

Selling, general, and administrative expenses 35,000
Accounts payable 75,000
Extraordinary loss from early retirement of bonds,
net of tax expense of $30,000 . 78,000
Research and development expenses 15,000
Gain from discontinued operations net of tax savings of $10,000 16,000
Provision for income taxes . 64,000
Net sales 545,000
Interest expense 40,000
Net cash provided by operations 168,000
Cost of goods sold 239,000

Required:
a. Prepare a properly formatted Income Statement for Sammy Co

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Sammy Co.
Income Statement for the year ending December 31, 2004

Net sales 545,000
Cost of goods sold (239,000)
Gross profit 306,000
Selling, ...

Solution Summary

The solution explains how to make a multiple step income statement using the example of Sammy Co.

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