Exercise 4-5 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. The discussion involves the following 2017 information related to Sage Company ($000 omitted). Administrative expense $5,135 4,195 60,805 17,465 Officers" salaries Depreciation of office furniture and equipment Cost of goods sold Rent revenue Selling expense 2,925 8,215 6,715 96,735 9,305 2,095 Delivery expense Sales commissions Depreciation of sales equipment Sales revenue Income tax Interest expense Common shares outstanding for 2017 total 40,550 (000 omitted) Prepare an income statement for the year 2017 using the multiple-step form. (Round earnings per share to 2 decimal places, e.g. 1.48.) SAGE COMPANY Income Statement For the Year Ended December 31, 2017 (In thousands, except earnings per share) Sales Revenue 96735 Cost of Goods Sold 60805 Gross Profit/ (Loss) 35930 Operating Expenses Selling Expenses Delivery Expense 2925 Sales Commission 8215 Depreciation Expense 6,715 17855 Administrative Expenses Salaries and Wages Expense 5135 Depreciation Expense 4,195 Total Expenses 9330 27185 Income From Operations 8745 Other Revenues and Gains Rent Revenue 17465 26210 Other Expenses and Losses Interest Expense 2095 Income Before Income Tax 24115 Income Tax Expense 9305 Net Income/ (Loss) 33420 33420 Net Income/(Loss) 0.82 Earnings Per Share SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Prepare an income statement for the year 2017 using the single-step form. (Round earnings per share to 2 decimal places, e.g. 1.48.) SAGE COMPANY Income Statement For the Year Ended December 31, 2017 (In thousands, except earnings per share) Revenues Sales Revenue 96735 Rent Revenue 17465 Total Revenues 114200 Expenses Cost of Goods Sold 60805 Delivery Expense 2,925 Interest Expense 2095 Administrative Expenses 9330 Total Expenses 9330 Income Before Income Tax 28305 Income Tax Expense 9305 Net Income/ (Loss) 19000 0.47 Earnings Per Share