The information below pertains to the operations of Montreal Retail Corporation for the year ended 31 December 20X6: Cost of merchandise sold Inventory warehousing cost Accounts payable Sales revenue Accumulated depreciation Sales returns Unearned revenue Depreciation expense Rent revenue Employee wages, salaries, and benefits Interest expense Investment revenue Loss on disposal of geographic segment Earnings from discontinued geographic segment Distribution expenses General and administrative expenses Loss on sale of noncurrent assets Income tax expense Fire loss $115,000 33,000 133,000 655,000 153,000 6,300 3,300 63,000 5,300 113,000 7,300 4,300 43,000 33,000 119,000 59.000 14,300 2 33,000 . Additional information Functional costs do not include depreciation or employee costs. Depreciation expense pertains 55% to warehousing cost, 30% to administrative costs, and 15% to distribution expense. Employee wages, salaries, and benefits pertain 25% to warehousing and merchandising, 40% to administrative costs, and 35% to distribution expense. The company's income tax rate is 25% Assume that the tax rate pertains to all elements of revenue, expense, gain, and loss. . - Saved 2. Prepare an income statement on a functional basis in a multiple-step format. (Loss amounts should be indicated by a minus sign.) 51 MONTREAL RETAIL CORPORATION Income Statement Year Ended 31 December 20X6 in Canadian dollars) Sales revenue Les sales returns Net sales Cost of merchandise sold Gross loss Operating and administrative expenses Distribution expense General and administrative expenses Inventory warehousing cost 0 rences 0 Total operating and administrative expenses Income from operations Other revenues and gains Rent revenue Inwestment revenue 0 Other expenses and losses Felons Lesson of noncurrent assets Incore income tax D D 1 The information below pertains to the operations of Montreal Retail Corporation for the year ended 31 December 20X6: Cost of merchandise sold Inventory warehousing cost Accounts payable Sales revenue Accumulated depreciation Sales returns Unearned revenue Depreciation expense Rent revenue Employee wages, salaries, and benefits Interest expense Investment revenue Loss on disposal of geographic segment Earnings from discontinued geographic segment Distribution expenses General and administrative expenses Loss on sale of noncurrent assets Income tax expense Fire loss $115,000 33,000 133,000 655,000 153,000 6,300 3,300 63,000 5,300 113,000 7,300 4,300 43,000 33,000 119,000 59.000 14,300 2 33,000 . Additional information Functional costs do not include depreciation or employee costs. Depreciation expense pertains 55% to warehousing cost, 30% to administrative costs, and 15% to distribution expense. Employee wages, salaries, and benefits pertain 25% to warehousing and merchandising, 40% to administrative costs, and 35% to distribution expense. The company's income tax rate is 25% Assume that the tax rate pertains to all elements of revenue, expense, gain, and loss. . - Saved 2. Prepare an income statement on a functional basis in a multiple-step format. (Loss amounts should be indicated by a minus sign.) 51 MONTREAL RETAIL CORPORATION Income Statement Year Ended 31 December 20X6 in Canadian dollars) Sales revenue Les sales returns Net sales Cost of merchandise sold Gross loss Operating and administrative expenses Distribution expense General and administrative expenses Inventory warehousing cost 0 rences 0 Total operating and administrative expenses Income from operations Other revenues and gains Rent revenue Inwestment revenue 0 Other expenses and losses Felons Lesson of noncurrent assets Incore income tax D D 1