The following amounts appeared on Davison Company's adjusted trial balance as of October 31, 2014, the end of its fiscal year:

Required
1. Prepare a classified, multiple-step income statement for internal use that lists the company's net sales, cost of goods sold, and gross profit, as well as the components and amounts of selling expenses and general and administrative expenses.
2. Present a condensed single-step income statement that lists these costs: cost of goods sold, selling expenses, and general and administrative expenses.

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Debit S 16,000 256,800 Credit Merchandise inventory Other assets Liabilities Brenda Davison, capital Brenda Davison, withdrawals Interest revenue Sales 78,400 203,280 65,000 1,120 424,000 Sales returns and allowances Cost of goods sold Sales salaries expense Rent expense, selling space Store supplies expense Advertising expense 6,500 28,000 169,300 52,000 19,000 5,000 29,400 53,000 5,200 1,600 Rent expense, office space Office supplies expense Totals. $706,800 $706,800