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Communications reported the following figures from its adjusted trial balance for its first year of business, which ended on July 31, 2024.

Complete Camila Communications' multi-step income statement for the year ended July 31, 2024. (Use a minus sign or parentheses to show other expenses.)

Camila Communications
Income Statement
Year Ended July 31, 2024

Data table:
\begin{tabular}{|c|c|}
\hline
Account & Amount (\$) \\
\hline
Cash & 2,900 \\
Cost of Goods Sold & [Amount] \\
Selling Expenses & 1,400 \\
Equipment, net & [Amount] \\
Accounts Payable & 4,300 \\
Salaries Payable & [Amount] \\
Common Stock & 4,365 \\
Net Sales Revenue & [Amount] \\
Notes Payable, long-term & 500 \\
Accounts Receivable & [Amount] \\
Merchandise Inventory & 1,000 \\
Interest Expense & [Amount] \\
Administrative Expenses & 3,300 \\
Refunds Payable & [Amount] \\
Estimated Returns Inventory & 100 \\
Sales Discounts Forfeited & [Amount] \\
\hline
\end{tabular}

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Answer :

GinnyAnswer
Let's construct the multi-step income statement for Camilia Communications for the year ended July 31, 2024, using the provided figures. We'll include all necessary calculations step-by-step.

Camilia Communications
Income Statement
For the Year Ended July 31, 2024

1. Net Sales Revenue
[tex]\[ \$4,365 \][/tex]

2. Cost of Goods Sold
[tex]\[ \$2,900 \][/tex]

3. Gross Profit (Net Sales Revenue - Cost of Goods Sold)
[tex]\[ \$4,365 - \$2,900 = \$1,465 \][/tex]

4. Operating Expenses:

- Selling Expenses
[tex]\[ \$1,400 \][/tex]

- Administrative Expenses
[tex]\[ \$3,300 \][/tex]

Total Operating Expenses (Selling Expenses + Administrative Expenses)
[tex]\[ \$1,400 + \$3,300 = \$4,700 \][/tex]

5. Operating Income (Loss) (Gross Profit - Total Operating Expenses)
[tex]\[ \$1,465 - \$4,700 = -\$3,235 \][/tex]

6. Other Income and Expenses:

- Interest Expense
[tex]\[ \$500 \][/tex]

- Sales Discounts Forfeited
[tex]\[ \$100 \][/tex]

Net Income (Loss) before Tax and Interest (Operating Income - Interest Expense + Sales Discounts Forfeited)
[tex]\[ -\$3,235 - \$500 + \$100 = -\$3,635 \][/tex]

Therefore, the multi-step income statement for Camilia Communications for the year ended July 31, 2024, can be summarized as follows:

[tex]\[ \begin{align*} \text{Net Sales Revenue} & \quad \$4,365 \\ \text{Cost of Goods Sold} & \quad (2,900) \\ \text{Gross Profit} & \quad 1,465 \\ \text{Operating Expenses:} \\ \quad \text{Selling Expenses} & \quad (1,400) \\ \quad \text{Administrative Expenses} & \quad (3,300) \\ \text{Total Operating Expenses} & \quad (4,700) \\ \text{Operating Income (Loss)} & \quad (3,235) \\ \text{Other Income and Expenses:} \\ \quad \text{Interest Expense} & \quad (500) \\ \quad \text{Sales Discounts Forfeited} & \quad 100 \\ \text{Net Income (Loss)} & \quad (3,635) \\ \end{align*} \][/tex]

In conclusion, the net loss for Camilia Communications for the year ended July 31, 2024, is \$3,635.

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