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

question 63

Multiple Choice

Use this information to answer the following question. $\begin{array}{c}\text { Alcorn \& Zeto Company}\\\text { Income Statement}\\\text { For the Year Ended December 31, 2010}\\\begin{array}{lrr}\text { Revenues } & \\\text { Net sales } & \$ 100,000 \\\text { Dividend income } &\underline{8,750} \\\text { revenues } &&\$108,750\\\text { Costs and expenses } & \\\text { Costs of goods sold } & \$ 30,000 \\\text { Selling expenses } & 10,000 \\\text { General and administrative expenses } & 13,750 \\\text { Interest expense } & \underline{ 6,250} \\\text { Total costs and expenses } && \underline{60,000} \\\text { before income taxes } && \$ 48,750 \\\text { Income taxes } && \underline{ 19,500} \\\text { Net income } && \underline{ \$ 29,250}\end{array}\end{array}$

If the income statement were prepared in a multistep form,operating expenses would be

• A) $46,000.
• B) $16,000.
• C) $22,250.
• D) $40,000.

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Definitions:

Thalamus

A brain structure acting as a relay station for sensory and motor signals to the cerebral cortex, excluding the sense of smell.

Relay Information

The process of transmitting information or messages from one person, device, or group to another.

Coordinate Muscle

The process of different muscles working together to perform movements smoothly and accurately.

Regulate Hormones

The process by which the body maintains hormonal balance, involving the production, secretion, and breakdown of hormones that influence various bodily functions.