Multiple-Step Income Statement

Use the following information to prepare a multiple-step income statement, including the revenue section and the cost of goods sold section, for Sauter Office Supplies for the year ended December 31, 20--.

Sales	$159,300
Sales Returns and Allowances	2,250
Sales Discounts	4,163
Interest Revenue	416
Merchandise Inventory, January 1, 20--	26,300
Estimated Returns Inventory, January 1, 20--	700
Purchases	107,000
Purchases Returns and Allowances	4,550
Purchases Discounts	2,670
Freight-In	885
Merchandise Inventory, December 31, 20--	29,900
Estimated Returns Inventory, December 31, 20--	1,100
Wages Expense	27,200
Supplies Expense	800
Phone Expense	800
Utilities Expense	8,000
Insurance Expense	1,300
Depreciation ExpenseEquipment	3,800
Miscellaneous Expense	600
Interest Expense	4,600

Sauter Office Supplies Income Statement For Year Ended December 31, 20--

Revenue from sales:
Freight-inGoods available for saleNet purchasesPurchasesSales			$- Select -
Less: Freight-inLess: Insurance expenseLess: Interest revenueLess: Miscellaneous expenseLess: Sales returns and allowances		$- Select -
Less: Cost of goods soldLess: Freight-inLess: Interest expenseLess: PurchasesLess: Sales discounts		- Select -	- Select -
Cost of goods purchasedGoods available for saleGross profitNet purchasesNet sales				$- Select -
Cost of goods sold:
Merchandise inventory, December 31, 20--Merchandise inventory, January 1, 20--Net salesSales returns and allowancesWages expense	blank	$- Select -	blank	blank
Estimated returns inventory, January 1, 20--Merchandise inventory, December 31, 20--Net salesSales returns and allowancesWages expense	blank	- Select -	$- Select -	blank
Freight-inInterest revenuePurchasesSupplies expenseUtilities expense		$- Select -
Less: Cost of goods purchasedLess: Cost of goods soldLess: Freight-inLess: Gross profitLess: Purchases returns and allowances	$- Select -
Less: Freight-inLess: Net salesLess: Purchases discountsLess: Sales discountsLess: Supplies expense	- Select -	- Select -
Cost of goods purchasedGoods available for saleGross profitNet purchasesNet sales		$- Select -
Add: Freight-inAdd: Interest revenueAdd: Phone expenseAdd: Sales discountsAdd: Utilities expense		- Select -
Cost of goods purchasedCost of goods soldGross profitIncome from operationsNet Sales			- Select -
Cost of goods soldFreight-inGoods available for saleGross profitMiscellaneous expense			$- Select -
Less: Cost of goods purchasedLess: Income from operationsLess: Merchandise inventory, December 31, 20--Less: Merchandise inventory, January 1, 20--Less: Purchases discounts	blank	$- Select -	blank	blank
Less: Cost of goods purchasedLess: Estimated returns inventory, December 31, 20--Less: Income from operationsLess: Merchandise inventory, January 1, 20--Less: Purchases discounts	blank	- Select -	- Select -	blank
Cost of goods purchasedCost of goods soldIncome from operationsNet purchasesNet sales				- Select -
Cost of goods purchasedGoods available for saleGross profitNet purchasesNet sales				$- Select -
Operating expenses:
Interest expenseInterest revenuePurchasesSalesWages expense			$- Select -
Freight-inInterest revenuePurchases discountsSalesSupplies expense			- Select -
Interest expensePhone expensePurchasesSales discountsSales returns and allowances			- Select -
Cost of goods purchasedFreight-inPurchases discountsSalesUtilities expense			- Select -
Cost of goods soldFreight-inIncome from operationsInsurance expenseInterest revenue			- Select -
Cost of goods soldDepreciation expense-equipmentIncome from operationsInterest expenseSales			- Select -
Cost of goods soldFreight-inMiscellaneous expensePurchasesSales returns and allowances			- Select -
Cost of goods soldGross profitNet incomeNet lossTotal operating expenses				- Select -
Income from operationsLoss from operations				$- Select -
Other revenues:
Cost of goods purchasedCost of goods soldFreight-inInterest revenueSales			$- Select -
Other expenses:
Interest expenseMiscellaneous expenseSupplies expenseUtilities expenseWages expense			- Select -	- Select -
Net incomeNet loss				$- Select -