The following amounts are from Silverton Co.'s 2014 income statement:

What amount would Silverton show for income from continuing operations on a multiple-step format income statement?
A)$52,000
B)$68,000
C)$57,000
D)$96,000

Question

The following amounts are from Silverton Co.'s 2014 income statement:

What amount would Silverton show for income from continuing operations on a multiple-step format income statement?
A)$52,000 
B)$68,000 
C)$57,000 
D)$96,000

Quizplus · Accepted Answer

To calculate income from continuing operations on a multiple-step income statement, we need to subtract operating expenses and income taxes from gross profit. Gross profit is calculated as net sales minus cost of goods sold. Using the amounts provided in the income statement, we have:
Net sales: $300,000
Cost of goods sold: $170,000
Gross profit: $130,000
Operating expenses: $48,000
Income taxes: $25,000
Income from continuing operations: $57,000 (=$130,000 - $48,000 - $25,000) Therefore, the correct answer is C.

The Following Amounts Are from Silverton Co