Revenue, expenses, and related accounts of Stackwell Enterprises Inc. for the year ended December 31, 1999, were Cost of goods sold $135,000 Utilities expense $4,800 Depreciation expense 12,000 Income tax rate 30%

Dividends declared and paid 4,000 Earthquake loss (gross Advertising expense 1,600 amount; assume not in Office wages expense 28,000 an earthquake area) $15,000 Insurance expense 2,400 Interest expense 10,000 Gain on sale of short-term Repairs and maintenance investments 3,500 expense 1,700 Commission expense 15,000 Interest income 2,000 Sales revenue 230,000 Required

a. Prepare a multi-step income statement similar to Exhibit