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

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 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 final answer to 2 decimal places.)