[10:24 PM] Petreen Gordon

Accounting, Analysis, and Principles Counting Crows Inc. provided the following information for the year 2020. Retained earnings, January 1, 2020 $ 600,000 Administrative expenses 240,000 Selling expenses 300,000 Sales revenue 1,900,000 Cash dividends declared 80,000 Cost of goods sold 850,000 Loss on discontinued operations 110,000 Rent revenue 102,700 Unrealized holding gain on available-for-sale debt securities 17,000 Income tax applicable to continuing operations 187,000 Income tax benefi t applicable to loss on discontinued operations 60,500 Income tax applicable to unrealized holding gain on available-for-sale debt securities 2,000 Accounting Prepare (a) a single-step income statement for 2020, (b) a retained earnings statement for 2020, and (c) a statement of comprehensive income using the two statement format. Shares outstanding during 2020 were 100,000. Analysis Explain how a multiple-step income statement format can provide useful information to a fi nancial statement user. Principles In a recent meeting with its auditor, Counting Crows management argued that the company should be able to prepare a non-GAAP income statement with some one-time administrative expenses reported similar to discontinued operations. Is such reporting consistent with the qualitative characteristics of accounting information as discussed in the conceptual framework? Explain.