Income Statement

The following data were provided by Bluebird Company for calendar year 1999:

Sales

$350,000

Gross margin percentage

45%

Net income percentage

8%

Income tax percentage

25%

Required

a. Based on the previous data, determine the following:

1. Cost of goods sold

2. Net income

3. Income taxes

4. Operating expenses (assume no “other expenses and revenues”)

b. Prepare a multiple step income statement for the year ended December 31, 1999.