The Following Is a Single-Step Income Statement for the X

question 16

Multiple Choice

The following is a single-step income statement for the X.Bonds Company: $$\begin{array} { c } \text { X. Bonds Company } \\\text { Income Statement } \\\text { For the Year Ended December 31, 2016 }\\\begin{array} { | l | r | r | } \hline \text { Revenues: } & & \\\hline \text { Net Sales } & \$ 300,000 & \\\hline \text { Interest Income } & 20,000 & \\\hline \text { Total Revenues } & & \$ 320,000 \\\hline \text { Expenses: } & & \\\hline \text { Cost of Goods Sold } & \$ 60,000 & \\\hline \text { Selling Expenses } & 25,000 & \\\hline \text { General and Administrative Expenses } & 30,000 & \\\hline \text { Interest Expense } & 14,000 & \\\hline \text { Income Tax Expense } & \underline { 45,000 } & \\\hline \text { Total Expenses } & & \underline { 174,000 } \\\hline \text { Net Income } & & \underline {\$146,000} \\\hline\end{array}\end{array}$$ ?
Refer to X.Bonds Company.If the income statement were prepared in a multiple-step format, gross profit would be:

• A) $240,000.
• B) $126,000.
• C) $260,000.
• D) $185,000.

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Definitions:

Annuities

Financial products that provide regular payments over a set period of time, often used as an income stream for retirees.

r

Often represents the rate of return or interest rate in financial equations and models.

APR

Annual Percentage Rate (APR) is a measure that depicts the actual yearly cost of funds over the term of a loan or the return on an investment, including any fees or additional costs associated with the transaction.

Effective Annual Rate

The interest rate that reflects the compounding effects within a year, providing a true reflection of the return on investment.