Prepare a multiple-step income statement

Question

Instructions:

Using whatever data you believe appropriate, prepare a multiple-step income statement for the Pratt Department Store for the year ended December 31, 2000.

Multiple-Step Income Statement

Below is a partial listing of the adjusted account balances of the Pratt Department Store at year-end on December 31, 2000.

Accounts Receivable                                        $ 19,000
Cost of Goods Sold                                          270,000
Selling Expenses (includes depreciation)              35,000
Interest Expense                                                 1,000
Accumulated Depreciation-Building                      10,000
Sales Discounts                                                  22,000
Merchandise Inventory                                        45,000
Administrative Expenses (includes depreciation)    18,000
Sales                                                               350,000
Accounts Payable                                                14,000
Interest Revenue                                                     800