Stober's Lawn Sprinkler Company sells irrigation equipment. Below is information necessary to prepare Stober's income statement for the year ending December 31, 20X7. Stobler attributes 60% of the rent and utilities to selling functions, and the remainder to general and administrative activities. 70% of the salaries are devoted to sales.
Prepare an income statement in both the single-step and multiple-step formats.
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Advertising expense
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$ 33,998
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Cost of goods sold
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466,773
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Rent expense
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144,000
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Salaries expense
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166,321
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Net sales
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972,299
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Income tax expense
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30,000
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Utilities expense
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26,997
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Interest expense
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18,500
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