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

2010 Income Statement 2009 Income Statement Sales $1,700,000 Sales $1,500,000 Cost of sales 520,000 Cost of sales $ 450,000 Gross profi t $1,180,000 Sales salaries 398,000 Selling expense $ 702,000 Advertising 175,000 Administrative expense 95,000 Offi ce supplies 54,000 Total selling and admin - Depreciation—building 40,000 istrative expense $ 797,000 Delivery expense 20,000 Total expenses $ 1,137,000 Net income $ 383,000 Net income $ 363,000 Required 1. Identify each income statement as either single- or multiple-step format.

2. Convert the 2009 income statement to the same format as the 2010 income statement.

AppendixLO1