Progress Presented below is information for Sunland Company for the month of January 2022. Cost of goods sold $278,000 Rent expense $30,000 Freight-out 7,300 Sales discounts 5,300 Insurance expense 12,400 Sales returns and allowances 13,000 Salaries and wages expense 48,000 Sales revenue 432,000 Prepare a multiple-step income statement.

                                         Sunland Company

              Income statement for the year ended December 31, 2020

                                                                              Amount in $'000

Sales                                                                                   432   

Less;

Sales returns and allowances                                           (13)

Sales discounts                                                                 (5.3)

Net Sales                                                                           413.7

Cost of goods sold                                                            (278)

Gross profit                                                                         135.7  

Operating expenses    

Freight-out                                                                           (7.3)

Salaries and wages expense                                              (48)

Rent expense                                                                       (30)

Insurance expense                                                             (12.4)

Net Income/(loss)                                                                 38                        

Explanation:

A multi-step income statement is one in which the elements of  incomes and expenses are grouped into operating and non-operating heads.

Operating income and expenses are those that are directly related to the ordinary activities of the entity

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.

the answer is a. $209,000