Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2020 information related toNashCompany ($000 omitted).

I need to prepare a single step and multiple step income statement but I'm getting confused on what goes where on the income statements with the provided accounts. Please advise

Administrative expense

Officers' salaries $5,207

Depreciation of office furniture and equipment 4,267

Cost of goods sold 60,877

Rent revenue 17,537

Selling expense

Delivery expense 2,997

Sales commissions 8,287

Depreciation of sales equipment 6,787

Sales revenue 96,807

Income tax 9,37

7Interest expense 2,167

Common shares outstanding for 2020 total28,756(000 omitted).

Only use the follwing accounts when preparing a multiple step income statement:

Expenses

Gross Profit / (Loss)

Income Before Income Tax

Income From Operations

Net Income / (Loss)

Operating Expenses

Revenues

Total Expenses

Total Revenues

Selling Expenses

Administrative Expenses

Total Selling Expenses

Total Administrative Expenses

Other Revenues and Gains

Other Expenses and Losses

Only use the follwing accounts when preparing a single step income statement:

Dividends

Earnings Per Share

Expenses

Gross Profit / (Loss)

Income Before Income Tax

Income From Operations

Net Income / (Loss)

Operating Expenses

Retained Earnings, January 1

Retained Earnings, December 31

Revenues

Total Expenses