Comparability and Consistency in Income Statements The following income statements were provided by Gleeson Company, a retailer:

Required 1. Identify each income statement as either single-step or multiple-step format.
2. Convert the 2007 income statement to the same format as the 2008 income statement.

Transcribed Image Text:

2008 Income Statement Sales Cost of sales Gross profit Selling expense Administrative expense Total selling and administrative expense Net income 2007 Income Statement $1,700,000 Sales 520,000 Cost of sales $1,180,000 Sales salaries $ 702,000 Advertising 95,000 Office supplies Depreciation-building Delivery expense Total expenses $ 797,000 $ 383,000 Net income $1,500,000 $ 450,000 398,000 175,000 54,000 40,000 20,000 $1,137,000 $ 363,000