In: Accounting
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).