E4-5

4. Interest expense was $20,000 5. The income tax rate is 30% 6. Cost of goods sold amounts to $500,000 7. Administrative expenses are 20% of cost of goods sold but only 8% of gross sales. 8. Four-fifths of the operating expenses relate to sales activities Instructions From the foregoing information prepare an income statement for the year 2017 in single-step form. E4-5 (L02,3) EXCEL (Multiple-Step and Single-Step Statements) 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 involves the following 2017 information related to P Bride Company (8000 omitted) Administrative expense s 4.900 3,960 60.570 17.230 Officers' salaries Depreciation of office furniture and equipment Cost of goods sold Rent revenue Selling expense Delivery expense Sales commissions Depreciation of sales esquipment 2.650 7,980 6,480 Sales nevenue Income tax Interest expense 9 070 1860 Instructions a) Prepare an income statement for the year 2017 using the multiple-step form. Common shares outstanding for 2017 total 40,550 (000 omitted). tb) Prepare an incomme statement for the year 2017 using the single-step form. e Which one do you prefer? Discuss