Exercise 1- 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 Bonita 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 |
Common shares outstanding for 2017 total 40,550 (000 omitted).
Prepare an income statement for the year 2017 using the multiple-step form.