Two accountants for the firm of Elwes and Wright are arguing about the merits of...
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Accounting
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 Metlock Company ($000 omitted).
| Administrative expense | ||
|---|---|---|
| Officers' salaries | $5,401 | |
| Depreciation of office furniture and equipment | 4,461 | |
| Cost of goods sold | 61,071 | |
| Rent revenue | 17,731 | |
| Selling expense | ||
| Delivery expense | 3,191 | |
| Sales commissions | 8,481 | |
| Depreciation of sales equipment | 6,981 | |
| Sales revenue | 97,001 | |
| Income tax | 9,571 | |
| Interest expense | 2,361 |
Common shares outstanding for 2020 total 26,428 (000 omitted).
(a)
Prepare an income statement for the year 2020 using the multiple-step form. (Round earnings per share to 2 decimal places, e.g. 1.48.)
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