E5-2 LO 5.4 7,000 Cost of Goods Sold and Income Statement Schuch Company presents you with the following account bal- ances taken from its December 31 adjusted trial balance: Inventory, January 1 $ 43,000 Purchases returns $3,500 Selling expenses 35,000 Interest expense 4,000 Purchases 100,000 Sales discounts taken 2,000 Sales 250,000 Gain on sale of property (pretax) General and administrative expenses 22,000 Freight in 5,000 Additional data: 1. A physical count reveals an ending-inventory of $22,500 on December 31. 2. Twenty-five thousand shares of common stock have been outstanding the entire year. 3. The income tax rate is 30% on all items of income. Required: 1. As a supporting document for Requirements 2 and 3, prepare a separate schedule for Schuch's cost of goods 2. Prepare a multiple-step income statement. 3. Prepare a single-step income statement. sold