E5-8 LO 5.4 LO 5.6 LO 5.8 Multiple-Step and Single-Step Income Statements The following items were derived from s were derived from Gold Company's December 31, 2016, adjusted trial balance: Cost of goods sold $101,000 Loss from strike (pretax) $ 9,000 Sales 195,000 28,000 Selling expenses General and administrative expenses 20,000 Interest revenue 4,000 Additional data: 1. Seven thousand shares of common stock have been outstanding the entire year 2. The income tax rate is 30% on all items of income. Required: 1. Prepare a 2016 multiple-step income statement. 2. Prepare a 2016 single-step income statement. 3. Next Level Discuss how Gold Company's income statement in Requirement I might be different if it used IFRS. E5-9 Income Statement Deficiencies David Company's income statements for the year ended December 31, 2017 and LO 5.5 December 31, 2016, are presented here: LO 5.6 Year Ended December 31, AICPA Adapted 2017 2016 Net sales $900,000 $750,000 Costs and expenses: Cost of goods sold $720,000 $600,000 Selling, general, and administrative expenses 112,000 90,000 Other, net 11,000 9,000 Total costs and expenses $843,000 $699,000 Income from continuing operations before income taxes $ 57,000 $ 51,000 Income taxes 23,000 21,000 Income from continuing operations $ 34,000 Loss on sale of Drexler Division, less applicable income taxes of $8,000 $ 30,000 8,000 Net income $ 26,000 $ 30,000 Earnings per share of common stock: Net income $ 3.00 Additional facts are as follows: SHOW ME HOW $ 2.60 The loss from operations of the discontinued Drexler Division (a strategic component of the con from January 1, 2017 to September 30, 2017 (the portion of the year prior to the date of sale), the company sale), and from Exercises January 1, 2016 to December 31, 2016, is included in David's income statements for the year ended December 31, 2017 and December 31, 2016, respectively, in "other, net." b. David has a simple capital structure with only common stock outstanding, and the net income per share of common stock was based on the weighted average number of common shares outstanding during each year. c. David's common stock is listed on the New York Stock Exchange and closed at $13 per share on December 31, 2017, and $15 per share on December 31, 2016. E5-8 LO 5.4 LO 5.6 LO 5.8 Multiple-Step and Single-Step Income Statements The following items were derived from s were derived from Gold Company's December 31, 2016, adjusted trial balance: Cost of goods sold $101,000 Loss from strike (pretax) $ 9,000 Sales 195,000 28,000 Selling expenses General and administrative expenses 20,000 Interest revenue 4,000 Additional data: 1. Seven thousand shares of common stock have been outstanding the entire year 2. The income tax rate is 30% on all items of income. Required: 1. Prepare a 2016 multiple-step income statement. 2. Prepare a 2016 single-step income statement. 3. Next Level Discuss how Gold Company's income statement in Requirement I might be different if it used IFRS. E5-9 Income Statement Deficiencies David Company's income statements for the year ended December 31, 2017 and LO 5.5 December 31, 2016, are presented here: LO 5.6 Year Ended December 31, AICPA Adapted 2017 2016 Net sales $900,000 $750,000 Costs and expenses: Cost of goods sold $720,000 $600,000 Selling, general, and administrative expenses 112,000 90,000 Other, net 11,000 9,000 Total costs and expenses $843,000 $699,000 Income from continuing operations before income taxes $ 57,000 $ 51,000 Income taxes 23,000 21,000 Income from continuing operations $ 34,000 Loss on sale of Drexler Division, less applicable income taxes of $8,000 $ 30,000 8,000 Net income $ 26,000 $ 30,000 Earnings per share of common stock: Net income $ 3.00 Additional facts are as follows: SHOW ME HOW $ 2.60 The loss from operations of the discontinued Drexler Division (a strategic component of the con from January 1, 2017 to September 30, 2017 (the portion of the year prior to the date of sale), the company sale), and from Exercises January 1, 2016 to December 31, 2016, is included in David's income statements for the year ended December 31, 2017 and December 31, 2016, respectively, in "other, net." b. David has a simple capital structure with only common stock outstanding, and the net income per share of common stock was based on the weighted average number of common shares outstanding during each year. c. David's common stock is listed on the New York Stock Exchange and closed at $13 per share on December 31, 2017, and $15 per share on December 31, 2016