Reference no: EM132584826

Question 1: Prepare Multi-step Income Statement by using only relevant accounts provided below. Write the answer of Net Income in the provided space.

Cash in hand                                                    34,400

Inventory brought to sale                                    32,000

Product returns approximate value                           4,000

Manufacturing machine -                                       75,900

Accumulated depreciation - Manufacturing machine      22,000

Cement machinery                                                  60,000

Accumulated depreciation on cement machinery           15,000

Notes payable                                                         35,000

refund on the sales payable                                      7,000

Account payable                                                   10,000

Common stock                                                    1,000

Retained earnings                                                 109,700

Profit to shareholders                                               48,000

Sales                                                                        400,000

Sales discounts                                                             2000

Sales returns and allowances                                           13000

Cost of goods sold                                                         186000

Selling expenses                                                            32,500

General and administrative expenses                                    19,800

Expense of Interest                                                                100

Required:

Question 2: What is the Net Income?