The following amounts were taken from the income statement of Beauty World for the year ending December 31,2013:
$\begin{array}{ll}
&\underline{2013}\
\text {Net Sales } &{\$ 750,000} \
\text { Selling, General and Administrative Expense } &450,000 \
\text { Research and Development Expense } &50,000 \
\text { Other Income (net) } &25,000
\end{array}$ How much is net income for the year ended December 31,2013? Would the net income amount have been different if the company had used a single-step income statement rather than the multiple-step statement? Explain.

Question

The following amounts were taken from the income statement of Beauty World for the year ending December 31,2013:
 $\begin{array}{ll}
&\underline{2013}\
\text {Net Sales  } &{\$ 750,000} \
\text { Selling, General and Administrative Expense } &450,000 \
\text { Research and Development Expense } &50,000 \
\text { Other Income (net) } &25,000
\end{array}$ How much is net income for the year ended December 31,2013? Would the net income amount have been different if the company had used a single-step income statement rather than the multiple-step statement? Explain.

Quizplus · Accepted Answer

The Answer of The following amounts were taken from the income statement of Beauty World for the year ending December 31,2013:
 $\begin{array}{ll}
&\underline{2013}\
\text {Net Sales  } &{\$ 750,000} \
\text { Selling, General and Administrative Expense } &450,000 \
\text { Research and Development Expense } &50,000 \
\text { Other Income (net) } &25,000
\end{array}$ How much is net income for the year ended December 31,2013? Would the net income amount have been different if the company had used a single-step income statement rather than the multiple-step statement? Explain.

The Following Amounts Were Taken from the Income Statement of Beauty