Multiple-step income statement
Identify the errors in the following income statement:
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Curbstone Company Income Statement For the Year Ended August 31, 2014 |
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Revenue from sales: |
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Sales |
$9,132,000 |
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Add: Sales returns and allowances |
$422,000 |
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Sales discounts |
115,000 |
537,000 |
$9,669,000 |
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Gross sales |
6,110,000 |
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Cost of merchandise sold |
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Income from operations |
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Expenses: |
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Selling expenses |
$800,000 |
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Administrative expenses |
575,000 |
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Delivery expense |
425,000 |
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Total expenses |
1,800,000 |
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$1,759,000 |
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Other expense: |
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Interest revenue |
45,000 |
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Gross profit |
$1,714,000 |
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