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 2017 information related to Sandhill Company ($000 omitted).

Administrative expense
Officers' salaries		$5,214
Depreciation of office furniture and equipment		4,274
Cost of goods sold		60,884
Rent revenue		17,544
Selling expense
Delivery expense		3,004
Sales commissions		8,294
Depreciation of sales equipment		6,794
Sales revenue		96,814
Income tax		9,384
Interest expense		2,174

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