the following information is available for teal mountain corp. for the year ended december 31, 2025.\nother…

the following information is available for teal mountain corp. for the year ended december 31, 2025.\nother revenues and gains $24,000\nother expenses and losses 4,200\ncost of goods sold 293,000\nsales discounts 4,800\nsales revenue 761,000\noperating expenses 222,000\nsales returns and allowances 10,800\nprepare a multiple - step income statement for teal mountain corp. the company has a tax rate of 25%.

Answer

Explanation:

Step1: Calculate net sales

Net sales = Sales revenue - Sales returns and allowances - Sales discounts Net sales = $761000 - 10800 - 4800$ Net sales = $745400$

Step2: Calculate gross profit

Gross profit = Net sales - Cost of goods sold Gross profit = $745400 - 293000$ Gross profit = $452400$

Step3: Calculate income from operations

Income from operations = Gross profit - Operating expenses Income from operations = $452400 - 222000$ Income from operations = $230400$

Step4: Calculate income before income taxes

Income before income taxes = Income from operations+ Other revenues and gains - Other expenses and losses Income before income taxes = $230400 + 24000-4200$ Income before income taxes = $250200$

Step5: Calculate income tax expense

Income tax expense = Income before income taxes×Tax rate Income tax expense = $250200×0.25$ Income tax expense = $62550$

Step6: Calculate net income

Net income = Income before income taxes - Income tax expense Net income = $250200 - 62550$ Net income = $187650$

Answer:

Particulars	Amount ($)
Sales
Sales Revenue	761000
Less: Sales Returns and Allowances	10800
Less: Sales Discounts	4800
Net Sales	745400
Less: Cost of Goods Sold	293000
Gross Profit	452400
Less: Operating Expenses	222000
Income from Operations	230400
Add: Other Revenues and Gains	24000
Less: Other Expenses and Losses	4200
Income before Income Taxes	250200
Less: Income Tax Expense ($250200×0.25)	62550
Net Income	187650