On December 31, 2014, the end of Plymouth Electronics' annual accounting period, the financial statement columns of its work sheet appeared as follows:

Required
1. Prepare a 2014 classified, multiple-step income statement for Plymouth Electronics, like Exhibit 5.15.
2. Prepare a single-step income statement, like Exhibit 5.17.
Analysis Component:
The gross profit ratio for Plymouth Electronics' year ended December 31, 2013, was 32%. Calculate this ratio for the year ended December 31, 2014, and compare it to the prior year, commenting on whether the change was favourable or unfavourable.

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Plymouth Electronics Work Sheet For the Year Ended December 31, 2014 Income Statement Dr Balance Sheet & Statement of Changes in Equity Account Merchandise inventory Other assets Celine Plymouth, capital 19,500 487,785 247,605 312,370 Celine Plymouth, withdrawals Interest earned 67,000 720 942,000 Sales returns and allowances Sales discounts Cost of goods sold Sales salaries expense Rent expense, selling space Store supplies expense Depreciation expense, store 5,715 14,580 719,000 79,200 33,000 1,620 Office salaries expense Rent expense, office space Office supplies expense Insurance expense Depreciation expense, office 8,910 56,500 3,000 735 3,390 2,760 Totals Net income Totals 928,410 942,720 574,285 559,975 14,310 942,720 942,720 574,285 574,285 14,310