Multiple-Step Income Statement
Shown Below Is a Recent Income Statement

Multiple-step income statement
Shown below is a recent income statement for Phaeton, Inc.:
Prepare an income statement for the year in a multiple-step format. (Use the grid provided below.)
$\begin{array}{c}\text {PHAETON, INC}\\\text {Income Statement}\\\text {For the Year Ended December 31,2010}\\\begin{array}{|l|r|r|}\hline\text { Net sales }&&\$6,000,000\\\hline \text { Cost and expenses: } & \\\hline\text { Cost of goods sold } & \$(4,200,000) \\\hline \text { Operating expenses } & (900,000)\\\hline \text { Interest expense } & (150,000)&(\$5,250,000) \\\hline\text { Earnings before income taxes } &&\$750,000 \\\hline \text { Income taxes } &&(360,000) \\\hline \text { Net earnings } &&\$390,000\\\hline\end{array}\end{array}$ $\begin{array}{c}\text {PHAETON, INC}\\\text {Income Statement}\\\text {For the Year Ended December 31, 2010}\\\begin{array} { | l | l | l | } \hline \text {Net sales \quad \quad }&\quad \quad & \$ 6,000,000 \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline\end{array}\end{array}$