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 Ayayai Company ($000
omitted).
Administrative expense | ||
Officers' salaries | $5,076 | |
Depreciation of office furniture and equipment | 4,136 | |
Cost of goods sold | 60,746 | |
Rent revenue | 17,406 | |
Selling expense | ||
Delivery expense | 2,866 | |
Sales commissions | 8,156 | |
Depreciation of sales equipment | 6,656 | |
Sales revenue | 96,676 | |
Income tax | 9,246 | |
Interest expense | 2,036 |
Common shares outstanding for 2017 total 40,550 (000 omitted).
Prepare an income statement for the year 2017 using the multiple-step form. (Round earnings per share to 2 decimal places, e.g. 1.48.)
Prepare an income statement for the year 2017 using the single-step form. (Round earnings per share to 2 decimal places, e.g. 1.48.)