The following amounts appeared on Plymouth Electronics adjusted trial balance as of December 31, 2023. Debit Credit Merchandise inventory $ 19,500 Other assets 487,785 Liabilities $ 312,370 Celine Plymouth, capital 247,605 Celine Plymouth, withdrawals 67,000 Sales 942,000 Sales discounts 14,580

The following amounts appeared on Plymouth Electronics adjusted trial balance as of December 31, 2023.

	Debit			Credit
Merchandise inventory	$	19,500
Other assets		487,785
Liabilities				$	312,370
Celine Plymouth, capital					247,605
Celine Plymouth, withdrawals		67,000
Sales					942,000
Sales discounts		14,580
Sales returns and allowances		5,715
Interest income					720
Cost of goods sold		719,000
Sales salaries expense		79,200
Office salaries expense		56,500
Rent expense, selling space		33,000
Rent expense, office space		3,000
Store supplies expense		1,620
Office supplies expense		735
Depreciation expense, store equipment		8,910
Depreciation expense, office equipment		2,760
Insurance expense		3,390
Totals	$	1,502,695		$	1,502,695

Required: 1. Prepare a 2023 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, 2023, 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, 2022, was 32%.