## Prepare a multiple-step income statement, Accounting Basics

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Prepare a Multiple-Step Income Statement based on the information presented in problem 4 above.

Lotu Wo Company

Multiple-Step Income Statement

Particulars           Amount in mce_markernbsp;

Net Sales             560,000

Less: Cost of goods sold                366,000

Gross Profit        194,000

Operating expenses:

Selling expenses              18,000

Operating income / Comprehensive income       164,000

Other income / (expense)

Interest expense             2,000

Interest revenue             600

Net profit before tax      162,600

Less: Income tax expense            50,000

Net profit after tax          112,600

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