Use the Information from the Following Multistep Income Statement to Prepare

question 6

Essay

Use the information from the following multistep income statement to prepare a single-step income statement in proper form.
$\begin{array}{c} \text {Olga \& Daughters, Inc.}\\ \text { Income Statement }\\ \text {For the Month Ended July 31, 2010}\\\begin{array}{llr} \text { Revenues } &\\ \text { Net sales } &\$15,000\\ \text {Dividend income } &250\\ \text { Interest income } 350&\\ \text { Total revenues} &&\$15,600\\ \text { Costs and expenses } &\\ \text { Cost of goods sold} &\$9,000\\ \text {Selling expenses } &1,200\\ \text { General and administrative expenses } &800\\ \text { Interest expense } &150\\ \text {Total costs and expenses } &&11,150\\ \text { Income before income taxes} &&\$4,450\\ \text { Income taxes } &\\ &\\&&1,780\\ \text { Net income } &&\$2,670\\\end{array}\end{array}$

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Definitions:

Common Stock

Type of security that signifies ownership in a corporation and represents a claim on part of the company's profits and assets.

Dividends

Disbursements issued by a company to its shareholders, representing a share of the company's earnings distributed to its stockholders.

Cash Dividend

A cash dividend refers to the distribution of a portion of a company's profits to its shareholders as cash.

Common Stock

Equity shares that represent ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.