The following account information appeared on Ucore Sales? adjusted trial balance as of December 31, 2020. The accounts are listed in alphabetical order.

Required

1. Prepare a classified multiple-step income statement for Ucore Sales, like Exhibit 5.13.

2. Prepare a single-step income statement, like Exhibit 5.15.

Analysis Component: The gross profit ratio for Ucore Sales? year ended December 31, 2019, was 28%. Calculate this ratio for the year ended December 31, 2020, and compare it to the prior year, commenting on whether the change was favourable or unfavourable (round to two decimal places).

Exhibition 5.13

Exhibition 5.15

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Debit Credit $129,964 Cost of goods sold. Depreciation expense, office equipment. 690 Depreciation expense, store equipment 3,204 Insurance expense 1,240 84,000 Liabilities. Lyle Ucore, capital. 46,547 Lyle Ucore, withdrawals. 20,500 Merchandise inventory. 3,400 Other assets 102,952 Rent expense (80% sales). 19,950 Salaries expense (70% sales). 71,000 226,500 Sales Sales discounts. 278 Sales returns and allowances. 1,469 Supplies expense (35% sales). 2,400 $357,047 $357,047 Totals. Lifetime Equipment Co-op Income Statement For Year Ended February 23, 2020 Sales $321,000 $ 4,300 2,000 Less: Sales discounts.. Sales returns and allowances. 6,300 Net sales. $314,700 Cost of goods sold. Gross profit from sales. 230,400 $ 84,300 Operating expenses: Selling expenses: Sales salaries expense $18,500 Advertising expense. 11,300 Rent expense, selling space. 8,100 Depreciation expense, store equipment. Store supplies expense. 3,000 1,200 Total selling expenses. $42,100 General and administrative expenses: Office salaries expense. $25,300 Office supplies expense. 1,800 Rent expense, office space 900 Depreciation expense, office equipment 700 Insurance expense. 600 Total general and administrative expenses.. 29,300 Total operating expenses. 71,400 $ 12,900 Profit from operations. Other revenues and expenses: -- Note: Rent revenue is added Interest expense is subtracted 2,440 -to get total Other revenues $ 15,340 $ 2,800 Rent revenue. Interest expense. 360 Profit and expenses.