Resources:Financial Accounting: Tools for Business Decision Making
Scenario:An inexperienced accountant prepared this condensed income statement for Simon Company a retail firm that has been in business for a number of years.
Income StatementFor the Year Ended December 31 2017
Cost of goods sold
As an experienced knowledgeable accountant you review the statement and determine the following facts:
Preparea detailed multi-step income statement with a brief explanation of 700 words. Assume a 25% tax rate.
Completeyour multi-step income statement in the providedExcelspreadsheetand
Developa written explanation of the variances between a multi-step and single step income statement and why there are differences in the amounts provided.