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Question Description
Based on the account balances provided, prepare a multi-step income statement and a classified balance sheet. Note: A “multi-step” income statement is one that shows Net Sales, Cost of Goods Sold, Gross Profit, Total Operating Expenses, Net gain/loss from other activities (if applicable), Income before taxes, Income tax expense, and Net Income.


A normal business process is mostly referred to as a brick and mortar way of doing business, in my own experience I’ve converted an auto parts industry in Accra, Ghana called “Abosokai” from a brick and mortar mode of operation to an online market where shops submit their inventory to my online platform to be sold nationwide.

Auto Parts Market aims to offer a high-quality full range of Auto Parts, Auto Repair Services, Towing and Car Sales services conveniently, easily and quickly via its e-commerce platform.

Auto Parts Market also plans to build strong vendor relationships with the most service conscious vendors who are capable of shipping major parts rapidly (on an overnight timeline in most cases).

We offer services in four primary areas- Auto Spare Parts, Auto Repair Services, Towing Services and Car Sales. We are also the exclusive distributors of Kroner products in Ghana and Africa as well as online distributors of Ghana Oil (GOIL) lubricants.

Under our Auto Parts Services, AP Market displays both new and used automobile parts from our vendor partners on its e-commerce platform, Our clients get to select from a wide range of options the most suitable vehicle part, acquire it online and have it delivered to them at a premium. The parts are essentially from globally recognized brands though we strive to make available every known car part. Our process is more convenient, the products are quality and the prices extremely competitive.

We also offer Automotive Repair Services which involve the recommendation of professional auto repair expertise to our clients due to our partnerships with several of the best automotive garages and repair shops. These expert establishments employ specially trained engineers to deal with all sorts of automobile challenges and repair.

AP Markets also offers our clients the services of the best towing companies. Our Towing Services involve the recommendation of towing companies which utilize professional towing methods and resources for hoisting and pulling, and towing wrecked, disabled or stalled automobiles.

Our clients can also take advantage of our Car Sales Services to acquire new or used vehicles from the most trusted car dealerships and local vehicle distribution businesses.

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