Lozier Catering and Events (LCE) offers a variety of services from small gatherings to large weddings and corporate retreats. Sales for year 1 totaled $937,500. Information regarding resources for the year includes the following:

	Resources Used	Resources Supplied
Depreciation	$ 57,150	$ 59,375
Training	29,850	36,300
Transportation	52,600	56,775
Publicity	73,400	79,200
Permanent staff	146,850	202,700
Temporary staff	270,350	277,450
Invoicing and records	24,975	28,500
Administrative	46,100	52,550

Required:

Management has requested that you do the following:

Prepare a traditional income statement.

Prepare an activity-based income statement.