The following balances were taken from the books of Novak Corp. on December 31, 2020.

Interest revenue $88,200 Accumulated depreciationâ€”equipment $42,200
Cash 53,200 Accumulated depreciationâ€”buildings 30,200
Sales revenue 1,382,200 Notes receivable 157,200
Accounts receivable 152,200 Selling expenses 196,200
Prepaid insurance 22,200 Accounts payable 172,200
Sales returns and allowances 152,200 Bonds payable 102,200
Allowance for doubtful accounts 9,200 Administrative and general expenses 99,200
Sales discounts 47,200 Accrued liabilities 34,200
Land 102,200 Interest expense 62,200
Equipment 202,200 Notes payable 102,200
Buildings 142,200 Loss from earthquake damage 152,200
Cost of goods sold 623,200 Common stock 502,200
Retained earnings 23,200

Assume the total effective tax rate on all items is 20%.

Required:
Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year.

Multiple-step income statement can be described as an income statement that that contains multiple additions and subtractions employed in order calculate the net income.

In a multiple-step income statement, the gross profit is shown and the operating revenues and expenses are clearly separated from the nonoperating revenues, expenses, gains, and losses.

In the attached excel, a net income is $110,400.