xercise 45 wo accountants for the firm of Elwes and Wright a

xercise 4-5 wo 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 nvolves the following 2017 information related to Sunland Company($000 omitted) Administrative expense Officers\' salaries Depreciation of office furniture and equipment Cost of goods sold Rent revenue Selling expense $5,552 4,612 61,222 17,882 Delivery expense 3,342 8,632 7,132 97,152 9,722 2,512 Sales commissions Depreciation of sales equipment Sales revenue Income tax Interest expense ommon shares outstanding for 2017 total 40,550 (000 omitted) repare an income statement for the year 2017 using the multiple-step form. (Round earnings per share to 2 decimal places, e.g. 1.48.) SUNLAND COMPANY

Solution

Multi Step Income Statement
For the year ended 2017

Particulas

Amount($) in \"000\"

Amount($) in \"000\"

Income

Sales revenue

97,152

Less:

Cost of goods sold

61,222

Gross Profit

35,930

Less:

Operating expenses:

Administrative expenses:

Officers\'salaries

5,552

Depreciation of office furniture and equipment

4,612

10,164

Selling expense:

Delivery expense

3,342

Sales commissions

8,632

Depreciation of sales equipment

7,132

19,106

Operating Income

6,660

Non operating Income:

Rent revenue

17882

Less: Non operating expense (Interest expense)

2512

15,370

Net Income before tax

22,030

Less: Income tax

9,722

Net income after tax

12,308

Multi Step Income Statement For the year ended 2017
Particulas	Amount($) in \"000\"	Amount($) in \"000\"
Income
Sales revenue	97,152
Less:
Cost of goods sold	61,222
Gross Profit		35,930
Less:
Operating expenses:
Administrative expenses:
Officers\'salaries	5,552
Depreciation of office furniture and equipment	4,612	10,164
Selling expense:
Delivery expense	3,342
Sales commissions	8,632
Depreciation of sales equipment	7,132	19,106
Operating Income		6,660
Non operating Income:
Rent revenue	17882
Less: Non operating expense (Interest expense)	2512	15,370
Net Income before tax		22,030
Less: Income tax		9,722
Net income after tax		12,308