A company has the following data: net sales, $405,000; cost of goods sold, $220,000; selling expenses, $90,000;

Question:

A company has the following data: net sales, $405,000; cost of goods sold, $220,000; selling expenses, $90,000; general and administrative expenses, $60,000; interest expense, $4,000; interest income, $3,000; and income tax expense, $2,500.
1. Prepare a single-step income statement.
2. Prepare a multistep income statement.