The following amounts appeared on Plymouth Electronics adjusted trial balance as of December 31, 2017.

Debit Credit Merchandise inventory $ 19,600 Other assets 488,785 Liabilities $ 313,370 Celine Plymouth, capital 248,210 Celine Plymouth, withdrawals 67,100 Sales 943,000 Sales discounts 14,680 Sales returns and allowances 5,815 Interest income 730 Cost of goods sold 719,500 Sales salaries expense 79,300 Office salaries expense 56,600 Rent expense, selling space 33,100 Rent expense, office space 3,100 Store supplies expense 1,630 Office supplies expense 740 Depreciation expense, store equipment 9,010 Depreciation expense, office equipment 2,860 Insurance expense 3,490

Totals $ 1,505,310 $ 1,505,310

Required: 1. Prepare a 2017 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, 2017, 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, 2016, was 32%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)