The following amounts appeared on Plymouth Electronics adjusted trial balance as of December 31, 2020.

	Debit			Credit
Merchandise inventory	$	18,700
Other assets		479,785
Liabilities				$	304,370
Celine Plymouth, capital					242,765
Celine Plymouth, withdrawals		66,200
Sales					934,000
Sales discounts		13,780
Sales returns and allowances		4,915
Interest income					640
Cost of goods sold		715,000
Sales salaries expense		78,400
Office salaries expense		55,700
Rent expense, selling space		32,200
Rent expense, office space		2,200
Store supplies expense		1,540
Office supplies expense		695
Depreciation expense, store equipment		8,110
Depreciation expense, office equipment		1,960
Insurance expense		1,960
Totals	$	1,481,775		$	1,481,775

Required: 1. Prepare a 2020 classified multiple-step income statement for Plymouth Electronics.

2. Prepare a single-step income statement.

Analysis Component: Calculate the gross profit ratio for the year ended December 31, 2020, and compare it to the prior year, commenting on whether the change was favourable or unfavourable. The gross profit ratio for Plymouth Electronics year ended December 31, 2019, was 32%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)