The following income statements were provided by Gleeson Company, a retailer:

Required
1. Identify each income statement as either single- or multiple-step format.
2. Convert the 2011 income statement to the same format as the 2012 income statement.

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2012 Income Statement 2011 Income Statement Sales Cost of sales Gross profit Selling expense Administrative expense Total selling and $1,700,000 520,000 $1,180,000 $ 702,000 95,000 Sales Cost of sales Sales salaries Advertising Office supplies Depreciation-building Delivery expense Total expenses Net income $1,500,000 $ 450,000 398,000 175,000 54,000 0,000 20,000 $1,137,000 $ 363,000 administrative expense $ 797,000 Net income $ 383,000