Instruction: prepare the multiple-step income statement. Income Statement Sales revenue 200,000 Sales allowance (3,000) Sales discount (2,000) Net sales 195,000 Cost of goods sold (157.000) Beginning inventory 10,000 Net purchase 150,000 Total purchase 150,000 Purchase allowance (1,000) Purchase discount (4,000) Freight in 5.000 Ending inventory (3.000) Gross profit 38,000 Operating expenses (6,000) Depreciation expense (3,000) Salesmen salary (1,000) Freight out (2.000) EBIT 32,000 Other revenues/expenses (5,000) Rent revenue 10,000 Interest expense (15.000) EBT 27,000 Tax 5% (1.350) Net income 25,650 EPS 0.2565 2. Extra Question: Prepare a Multi-step income statement for a Merchandising Business