The ledger of Paint Supplies Inc. contains the following information for operations for the year ended September 30, 2020:

Sales revenue............................................................................. $350,000
Gain on discontinued operations............................................ 18,750
Operating expenses (excluding income tax)......................... 67,500
Income tax expense, operating income.................................. 10,000
Other loss................................................................................... 22,500
Cost of goods sold..................................................................... 230,000
Income tax expense, gain on discontinued operations........ 6,250


Required

1. Prepare a multi-step income statement for the year ended September 30, 2020. Omit earnings per share. Use a one-column layout.

2. Was 2020 a good year or a bad year for Paint Supplies Inc.? Explain your answer in terms of the outlook for 2021.