The following data pertain to a corporation: net sales, $405,000; cost of goods sold, $220,000; selling expenses, $90,000; general and administrative expenses, $60,000; income taxes, $7,500; interest expense, $4,000;

interest income, $3,000; and common stock outstanding, 50,000 shares.

1. Prepare a single-step income statement.

2. Prepare a multistep income statement.

Multistep Income Statement