{"id":221746,"date":"2025-05-30T13:40:18","date_gmt":"2025-05-30T13:40:18","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=221746"},"modified":"2025-05-30T13:40:21","modified_gmt":"2025-05-30T13:40:21","slug":"in-its-income-statement-for-the-year-ended-december-31-2022-blossom-company-reported-the-following-condensed-data","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/05\/30\/in-its-income-statement-for-the-year-ended-december-31-2022-blossom-company-reported-the-following-condensed-data\/","title":{"rendered":"In its income statement for the year ended December 31, 2022, Blossom Company reported the following condensed data."},"content":{"rendered":"\n

In its income statement for the year ended December 31, 2022, Blossom Company reported the following condensed data. Operating expenses $731,000 Interest revenue $ 44,000 Cost of goods sold 1,267,000 Loss on disposal of plant assets 27,000 Interest expense 82,000 Net sales 2,210,000 income tax expense 56,000 Other comprehensive income (net of $1,200 tax) 9,400 Prepare a multiple-step income statement. Blossom Company Income Statement None\u00a0\u00a0In its income statement for the year ended December 31, 2022, Blossom Company reported the following condensed data. $ 44,000 $731,000 Interest revenue Operating expenses 27,000 Loss on disposal of plant assets 1,267,000 Cost of goods sold 2,210,000 82,000 Net sales Interest expense 9,400 Income tax expense 56,000 Other comprehensive income (net of $1,200 tax) Prepare a multiple-step income statement. Blossom Company Income Statement For the Month Ended December 31, 2022 Net Sales $ Cost of Goods Sold Gross Profit Operating Expenses $ eTextbook and Media

<\/p>\n\n\n\n

The Correct Answer and Explanation is:<\/mark><\/strong><\/p>\n\n\n\n

\n\n\n\n

Blossom Company<\/strong>
Income Statement<\/strong>
For the Year Ended December 31, 2022<\/strong><\/p>\n\n\n\n

Net Sales<\/strong> ………………………………………………. $2,210,000
Cost of Goods Sold<\/strong> …………………………….. (1,267,000)
Gross Profit<\/strong> …………………………………………… 943,000<\/strong><\/p>\n\n\n\n

Operating Expenses<\/strong> ………………………………. (731,000)
Income from Operations<\/strong> ………………………… 212,000<\/strong><\/p>\n\n\n\n

Other Revenues and Gains:<\/strong>
    Interest Revenue ……………………………………… 44,000
Other Expenses and Losses:<\/strong>
    Interest Expense ………………………………………. (82,000)
    Loss on Disposal of Plant Assets …………… (27,000)
Total Other Revenues and (Losses)<\/strong> ………… (65,000)<\/p>\n\n\n\n

Income Before Income Taxes<\/strong> ………………… 147,000<\/strong>
Income Tax Expense<\/strong> ………………………………. (56,000)
Net Income<\/strong> ……………………………………………. $91,000<\/strong><\/p>\n\n\n\n

Other Comprehensive Income (net of tax)<\/strong>
    Unrealized Gain ………………………………………….. 9,400<\/p>\n\n\n\n

Comprehensive Income<\/strong> …………………………… $100,400<\/strong><\/p>\n\n\n\n

\n\n\n\n

Explanation<\/strong><\/h3>\n\n\n\n

A multiple-step income statement<\/strong> provides a detailed breakdown of revenues and expenses to help users better assess a company’s operational performance and financial health. This format separates operating and non-operating items, which enhances clarity for investors and analysts.<\/p>\n\n\n\n

The statement begins with Net Sales<\/strong>, which represents the total revenues from goods or services sold. From this, Cost of Goods Sold (COGS)<\/strong> is subtracted to calculate Gross Profit<\/strong>. Gross Profit of $943,000 ($2,210,000 \u2013 $1,267,000) reflects the profitability from core operations before any other expenses.<\/p>\n\n\n\n

Next, Operating Expenses<\/strong> ($731,000) are deducted to determine Income from Operations<\/strong>, which was $212,000. This figure is crucial as it shows the earnings from the company\u2019s main activities, excluding financial and non-recurring items.<\/p>\n\n\n\n

Then, other revenues and expenses<\/strong> are considered. Interest Revenue<\/strong> of $44,000 is added, while Interest Expense<\/strong> of $82,000 and Loss on Disposal of Plant Assets<\/strong> of $27,000 are subtracted. These adjustments bring the Income Before Taxes<\/strong> to $147,000.<\/p>\n\n\n\n

After applying Income Tax Expense<\/strong> of $56,000, we arrive at a Net Income<\/strong> of $91,000.<\/p>\n\n\n\n

Lastly, the income statement includes Other Comprehensive Income<\/strong>, which accounts for items that bypass the income statement but affect equity. In this case, an unrealized gain of $9,400<\/strong> (net of tax) is added, bringing the Comprehensive Income<\/strong> to $100,400.<\/p>\n\n\n\n

This detailed structure helps stakeholders distinguish between income from core operations and incidental or non-operating activities, offering a more transparent view of financial performance.<\/p>\n\n\n\n

\"\"<\/figure>\n","protected":false},"excerpt":{"rendered":"

In its income statement for the year ended December 31, 2022, Blossom Company reported the following condensed data. Operating expenses $731,000 Interest revenue $ 44,000 Cost of goods sold 1,267,000 Loss on disposal of plant assets 27,000 Interest expense 82,000 Net sales 2,210,000 income tax expense 56,000 Other comprehensive income (net of $1,200 tax) 9,400 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-221746","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/221746","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=221746"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/221746\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=221746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=221746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=221746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}