Use This Information to Answer the Following Question If the Income Statement Were Prepared in a Multistep Form,gross

question 152

Multiple Choice

Use this information to answer the following question. $\begin{array}{c}\text { Alcorn \& Zeto Company}\\\text { Income Statement}\\\text { For the Year Ended December 31, 2010}\\\begin{array}{lrr} \text { Revenues } & & \\\text { Net sales } & \$ 100,000 & \\ \text { Dividend income } & 8,750 & \\\text { Total revenues }&& \$ 108,750 \\\text { Costs and expenses } & & \\\text { Costs of goods sold } & \$ 29,000 \\\text { Selling expenses } & 10,000 \\\text { General and administrative expenses } & 13,750 \\\text { Interest expense } & 6,250 \\\text { Total costs and expenses } && 59,0000 \\\text { Income before income taxes } && \$ 49,750 \\\text { Income taxes } && 19,500 \\\text { income } && \$ 30,250\end{array}\end{array}$ If the income statement were prepared in a multistep form,gross margin from sales would be

• A) $79,750.
• B) $76,000.
• C) $71,000.
• D) $86,000.

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