Income Statement Format The following information from Belvidere Company's current operations is available: Administrative expenses Cost of goods sold Sales revenue Selling expenses Interest expense Loss from operations of discontinued segment Gain on disposal of discontinued segment $96,600 649,600 1,080,800 121,800 9,800 84,000 56,000 Income taxes: Amount applicable to ordinary operations 81,200 Reduction applicable to loss from operations of discontinued segment Amount applicable to gain on disposal of discontinued segment 33,600 22,400 Required a. Prepare a multiple-step income statement. (Disregard earnings per share.) b. Prepare a single-step income statement. (Disregard earnings per share.) Note: Do not enter any answers as negative numbers unless it's indicated with an asterisk*. BELVIDERE COMPANY Multiple-Step Income Statement For Year Ended Sales Revenue Cost of Goods Sold Gross Profit on Sales Selling Expenses Administrative Expenses Operating Income Interest Expense $ 1,080,800 649,600 431,200 $ 121,800 96,600 218,400 212,800 9,800 203,000 O 0 81,200 121,800 Income from Continuing Operations before Taxes Income Tax Expense Income from Continuing Operations Discontinued Operations Loss from operations of discontinued segment Gain on disposal of discontinued segment Net Income 47,600 x 33,600 81,200 x $ 40,600 x Note: Do not enter any answers as negative numbers unless it's indicated with an asterisk *. BELVIDERE COMPANY Single-Step Income Statement For Year Ended Sales Revenue Expenses Cost of Goods Sold Selling Expenses Administrative Expenses Interest Expense Income Tax Expense $ 1,080,800 $ 649,600 121,800 96,600 9,800 81,200 959,000 121,800 Income from Continuing Operations Discontinued Operations Loss from operations of discontinued segment Gain on disposal of discontinued segment Net Income 47,600 x 33,600 81,200 x $ 40,600 x