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Psymon Company, Incorporated, sells construction equipment. The annual fiscal period ends on December 31. The following adjusted trial balance was created from the general ledger accounts on December 31:

Account Titles	Debits	Credits
Cash	$ 42,000
Accounts Receivable	18,000
Inventory	65,000
Property and Equipment	50,000
Accumulated Depreciation		$ 21,000
Accounts Payable		30,000
Common Stock		90,000
Retained Earnings, January 1		11,600
Sales Revenue		167,000
Cost of Goods Sold	98,000
Salaries and Wages Expense	17,000
Office Expense	18,000
Interest Expense	2,000
Income Tax Expense	9,600
Totals	$ 319,600	$ 319,600

Required:

1. Prepare a multistep income statement that would be used for external reporting purposes. TIP: Some of the accounts listed will appear on the balance sheet rather than the income statement.

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