3. Collins Co. had the following account balances:

Sales revenue $ 1,000,000

Cost of goods sold 400,000

Salaries and wages expense 75,000

Depreciation expense 30,000

Dividend revenue 10,000

Utilities expense 15,000

Rent revenue 30,000

Interest expense 18,000

Sales returns and allow. 45,000

Advertising expense 19,500

Loss from discontinued operations 20,000

The tax rate for Collins Co. is 25%.

a. Prepare a single step income statement

b. Prepare a multiple step income statement