Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a single-step format. The discussion involves the following 2017 information related to Headland Company ($000 omitted).

Administrative expense
Officers' salaries		$5,348
Depreciation of office furniture and equipment		4,408
Cost of goods sold		61,018
Rent revenue		17,678
Selling expense
Delivery expense		3,138
Sales commissions		8,428
Depreciation of sales equipment		6,928
Sales revenue		96,948
Income tax		9,518
Interest expense		2,308

Common shares outstanding for 2017 total 40,550 (000 omitted).