Under generally accepted accounting principles, Company's can present their income statements in 1 of 2 different formats
1. With the information provided below, prepare 2 Income Statements for the Williams Company for the year ended December 31. 20XX.
a) Single step Income Statement						3
b) Multiple step Income Statement						5
To earn credit, you must use Excel functions to make any related calculations.
Income tax expense	$ 250,000
Interest expense	5,000
Selling expenses	10,000
Research and development expenses	5,000
Interest income	3,000
Sales revenues	1,000,000
Administrative expenses	15,000
Gain on sale of land	5,000
Cost of goods sold expense	250,000
Foreign exchange currency gains	5,000
Increase to slow moving inventory provision	5,000
Single step Income Statement				Multiple step Income Statement
Wlliams Company				Wlliams Company
Income Statement				Income Statement
Period Ending Dec. 31, 20XX				Period Ending Dec. 31, 20XX
2. Historically, Nike presented its Income Statement using the single step presentation approach. Eventually, Nike came under						1
tremendous pressure to change the presentation of its Income Statement to the multiple step approach, which it did.
What do you think caused Nike to come under such pressure to change its Income Statement to the multiple step approach?
Please be specific in your answer (hint: think or consider some of the fundamental principles of accounting information).
3. Use the FASB Accounting Standards Codification to research the Income Statement Presentation Format topic.						1
Did you find any authoritative information in the Codification on basic Income Statement Presentation Format(s)?
If so, where did you find the information on basic Income Statement format and what is the authoritative guidance?
You must use the FASB Codification Reference numbers to earn credit.