1. Visit the SEC's Web site (http://idea.sec.gov/idea/searchidea/companysearch_idea.html).
- Select a company filing of your choice that contains a multiple-step income statement.
- Provide the link of the filing
2. Prepare a process documentation that
- is prepared in a professional manner
- is in the form of a memorandum or as a numbered listing of items, depending on your individual preference.
- includes the following elements:
a definition and description of the specific sections of the income statement
a description of the different methods of preparing income statements
an explanation of the conceptual guidelines for reporting income
how to handle the special types of income statement items
I looked up Hershey Co, a chocolate manufacturer (yum!)
Net Sales: What is sold to the customer less an estimate for returns and allowances
Cost of sales: cost of the product sold (manufacturing costs, material, labor, factory costs)
Selling, marketing and administrative: cost of business overhead and promotional activities
Business realignment and impairment (credits) charges, net: costs of facilities abandoned or changed, cost of severance payments and the write down of assets that have lost their value.
Subtotal: Income before interest and taxes: net sales less the costs mentioned above
Interest expense, net: interest expense less any ...
Your tutorial is 403 words plus a screen shot of Hershey Co from the SEC website and the link to go see it. Each item in the Income Statement for Hershey Co is described (in bullet fashion) and then methods, guidelines and special items are mentioned with examples.