Problem 5-7A Income statements-perpetual LOS CHECK FIGURE: 1. Income from operations $13,59 The following amounts appeared on Plymouth Electronics' adjusted trial balance as of December 31 2017 Debit Credit Merchandise inventory Other a $19,500 487.785 312,370 247,605 Celine Plymouth, capital Celine Plymouth, withdrawals Sales Sales discounts Sales returns and allowances Interest income Cost of goods sold Sales salaries expense Office salaries expense Rent expense, selling space Rent expense, office space Store supplies expense Office supplies expense Depreciation expense, store equipment. Depreciation expense, office equipment. Insurance expense Totals 67,000 942,000 14,580 5,715 720 19,000 79,200 56,500 33,000 3,000 1,620 735 8,910 2.760 3,390 $1,502,695 $1,502,695 Required 1. Prepare a 2017 classified, multiple-step income statement for Plymouth Electronics, like Exhibit 5.13. 2. Prepare a single-step income statement, like Exhibit 5.15. Analysis Component: The gross profit ratio for Plymouth Electronics' year ended December 31, 2016, was 32%. Calculate this ratio for the year ended December 31, 2017, and compare it to the prior year, com- menting on whether the change was favourable or unfavourable