1. Prepare a multiple-step income statement for the year ended April 30, 2018.

Following is the April 30, 2018 trial balance for McShane Ltd., a manufacturer of computer mice. Debit Credit Accounts receivable $ 700 Accounts payable $ 25,000 Accumulated amortization 33,000 Amortization expense 12,000 Cash 38,000 Cost of goods sold 324,000 Inventory 222,000 Equipment 196,000 Selling expenses 136,000 General expenses 113,000 Interest expense 11,000 Prepaid insurance 300 Rent expense 18,000 Sales 833,000 Sales returns and allowances 3,000 Wages expense 128,000 Loss on sole of plant assets 8,000 Dividends 9,000 Common shares 240,000 Retained earnings beginning 88,000 1,225.000 1,225.000