Use the Information from the Following Single-Step Income Statement to Prepare

question 96

Essay

Use the information from the following single-step income statement to prepare a condensed multistep income statement in proper form.
$\begin{array}{c}\text {Midway Industries }\\\text {Income Statement}\\\text {For the Month Ended December 31, 2010}\\\begin{array}{lr}\text {Revenues}\\\text {Net sales}&\$10,000\\\text {Interest income}&300\\\text {Total revenues}&&\$10,300\\\\\text { Costs of goods sold } & \$ 5,000 \\\text { Selling expenses } & 3,000 \\\text { General and administrative expenses } & 1,800 \\\text { Interest expense } & 800\\\text {Total costs and expense}&&10,600\\\text {Net (loss)}&&(\$300)\end{array}\end{array}$

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Definitions:

Demand Curves

Graphical representations showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity supplied over a given period.

Most Elastic

Refers to the responsiveness of the demand or supply of a good or service to changes in its price, with the most elastic being the most sensitive to price changes.

Supply Least Elastic

Characterizes goods or services for which supply does not significantly change in response to price changes, often due to limitations in production capacity or availability of resources.