Exercise 4-12

Two accountants, Yuan Tsui and Sergio Aragon, are arguing about the merits of presenting an income statement in the multiple-step versus the single-step format. The discussion involves the following 2017 information for P. Bride Company (in thousands):

Administrative expenses					Selling expenses
	Officers salaries		$3,700			Delivery		$2,420
	Depreciation of office furniture and equipment		3,360			Sales commissions		6,900
Cost of goods sold			58,170			Depreciation of sales equipment		6,300
Rental revenue			14,380		Sales revenue			96,200
					Interest expense			1,820

Common shares outstanding for 2017 total 30,570 (in thousands). Income tax for the year was $9,769.

1. Prepare an income statement for the year ended December 31, 2017, using the multiple-step format, showing expenses by function. Include calculation of EPS. (List Selling Expenses before Administrative Expenses. Round per share answer to 2 decimal places, e.g. 52.75.)

2. Prepare an income statement for the year ended December 31, 2017, using the single-step format. Include calculation of EPS. (Round per share answer to 2 decimal places, e.g. 52.75.)