Question

Two accountants for them of Elves and Wrightare arguing about the merits of preserving an income statement in a multiple-step We are slag fomat. The discussion is the following 2020 romaaned to Mange Carpan ISOOD med. Administre expense Officers are Depreciation of office care and corrent Cost of goods sold Rent revenue Selingen Delivery expense sales con Deprecaten araberant 6.730 Sela Incertex 2.110 Common shares outstanding for 2020 total 36,800 (000 omitted) Prepare an income statement for the year 2020 aing the multiple-step farm. (Round cerminga perature to 2 decimal places, MARIGOLD COMPANY Income Statement (In thousand, encestes per share) Prepare an income statement for the year 2020 using the singlestep form. (Round earnings per Share to 2 decimal places, e.g. 1.48) MARIGOLD COMPANY Incon Statement (In thousands, secapearings per dare)

Answer 1

Multiple step income statement

	($)	($)	($)
Sales revenue			96750
Less :cost of goods sold			60820
Gross income			35930
Add :Non operating income
Rent revenue		17400
Less:Operating expenses
Selling and distribution expenses
a)Delivery expenses	2500
b)Sales commission	6230
c)Depreciation on sales equipment	6730	15460
Less:non operating expense
Interest		2110
Net profit before tax		35760
Less:income tax		9320
Net income			$26440

Single step income statement

	($)
Sales revenue	96750
Rent revenue	17400
Total revenue	114150
Less:Expenses
cost of goods sold	60820
Delivery expenses	2500
Sales commission	6230
Depreciation on sales equipment	6730
Interest	2110
income tax	9320
Net income	$26440