Income statement information for Flett Tire Repair Corporation for the year 2023 follows:

The effective tax rate on all income is 25%, and Flett follows ASPE.

Instructions 

a. Prepare a multiple-step income statement for 2023, showing expenses by function. 

b. Prepare a single-step income statement for 2023, showing expenses by nature. 

c. Discuss the merits of the two income statements, compared with each other.

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General and administrative expenses: Salaries and wages expense Depreciation expense-building Office supplies expense Inventory (ending) Loss from flood damage Gain on the disposal of equipment Purchases Sales revenue Interest expense $ 39,000 28,500 9,500 137,000 50,000 5,500 600,000 930,000 9,000 Freight in Purchase discounts Dividend revenue Inventory (beginning) Sales returns and allowances Service expenses: Salaries and wages Depreciation expense- garage equipment Garage supplies expense $ 14,000 10,000 20,000 120,000 15,000 71,000 18,000 9,000