The accountant of Latifa Shoe Co. has piled the following information from the companys records as a basis for an income statement for the year ended December 31, 2017. ( 20%)

Rent revenue $ 29,000

Interest expense 18,000

Other gain 31,000

Salaries and wages expense (selling) 114,800

Income tax 37,400

Salaries and wages expense (administrative) $135,900

Other administrative expenses 51,700

Cost of goods sold 496,000

Net sales 980,000

Depreciation on plant assets 65,000

Cash dividends declared 16,000

There were 20,000 shares of common stock outstanding during the year.

Instructions

(a) Prepare a multiple-step income statement.

(b) Prepare a single-step income statement.

(c) Which format do you prefer? Discuss.