Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2025 information related to P. Bride Company ($000 omitted).

Instructions

a. Prepare an income statement for the year 2025 using the multiple-step form. Common shares outstanding for 2025 total 40,550 (000 omitted).

b. Prepare an income statement for the year 2025 using the single-step form.

c. Which one do you prefer? Discuss.

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Administrative expense Officers' salaries Depreciation of office furniture and equipment Cost of goods sold Rent revenue Selling expense Delivery expense Sales commissions Depreciation of sales equipment Sales revenue Income tax Interest expense $ 4,900 3,960 60,570 17,230 2,690 7,980 6,480 96,500 9,070 1,860