2. Prepare multiple-step income statement for fiscal year 2016. NELSON COMPANY Income Statement For Year Ended January 31, 2016 Sales 11495 Sales discounts 2,000 Less: Sales returns and allowances Net sales Cost of goods sold Gross profit Expense 2.100 4,100 110,850 110,850 Selling expenses epreciation expense-Store equipment Sales salaries expense ,625 t expense-Selling space Store supplies expense Advertising expense en ,300 9,000 Total selling expenses General and administrative expenses 13,925 Office salaries expense ent expense-Office space 1,500 nce expense Total general and administrative expenses Total expenses et income 1,500 15,425 2. Prepare multiple-step income statement for fiscal year 2016. NELSON COMPANY Income Statement For Year Ended January 31, 2016 Sales 11495 Sales discounts 2,000 Less: Sales returns and allowances Net sales Cost of goods sold Gross profit Expense 2.100 4,100 110,850 110,850 Selling expenses epreciation expense-Store equipment Sales salaries expense ,625 t expense-Selling space Store supplies expense Advertising expense en ,300 9,000 Total selling expenses General and administrative expenses 13,925 Office salaries expense ent expense-Office space 1,500 nce expense Total general and administrative expenses Total expenses et income 1,500 15,425