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 Bramble Company ($000 omitted). Administrative expense $
Officers' salaries $5,006
Depreciation of office furniture and equipment 4,066
Cost of goods sold 60,676
Rent revenue 17,336
Selling expense
Delivery expense 2,796
Sales commissions 8,086
Depreciation of sales equipment 6,586
Sales revenue 96,606
Income tax 9,176
Interest expense 1,966
(a) Prepare income statement for the year 2020 using the mutiple-step form. Common shares outstanding for 2020 total 38,960 (000 omitted).
(b) Prepare an income statement for the year 2020 using the single-step form.