Comparability and Consistency in Income Statements The following income statements were provided by Chisholm Company, a wholesale food distributor:

2010 2009 Sales $1,700,000 $1,500,000 Cost of sales $ 612,000 $ 450,000 Sales salaries 427,000 398,000 Delivery expense 180,000 175,000 Offi ce supplies 55,000 54,000 Depreciation—truck 40,000 40,000 Computer line expense 23,000 20,000 Total expenses $ 1,337,000 $ 1,137,000 Net income $ 363,000 $ 363,000 Required 1. Identify each income statement as either single- or multiple-step format.

2. Restate each item in the income statements as a percentage of sales. Why did net income remain unchanged when sales increased in 2010?

AppendixLO1