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 2020 information related to Coronado Company ($000 omitted). Administrative expense Officers' salaries $ 4,990
Depreciation of office furniture and equipment 4,050
Cost of goods sold 60,660
Rent revenue 17,320
Selling expense Delivery expense 2,780
Sales commissions 8,070
Depreciation of sales equipment 6,570
Sales revenue 96,590
Income tax 9,160
Interest expense 1,950
Instructions:
a) Prepare an income statement for the year 2014 using the multiple-step form. Common shares outstanding for 2014 total 40,550 (000 omitted).
b) Prepare an income statement for the year 2014 using the single-step form. .