Five star enterprises is involved in sales of educational materials. The firm presents the following information for the year ended 2020:

	AED
Salaries	15,000
Sales	150,000
Sales returns	5,000
Rental revenue	20,000
Depreciation of sales van	4,000
Sales commission paid	5,000
Interest expenses	3,000
Income tax	15,000
Cost of goods sold	70,000
Advertising expenses	10,000

Required:

Prepare an income statement for the year 2020 using the multiple-step format. Common shares outstanding for 2020 is 40,000.