Data taken from the accounting records of Sherri$$s Designs on December $31$ are shown.

Operating expenses $$1,000$

Sales revenue $5,000$

Inventory, Jan. $1,20191,600$

Purchases $1,200$

Interest revenue $250$

Loss on disposal of a discontinued component of the business $($pre$-$tax$)400$

Inventory, Dec. $31,2019750$

Income tax expense $660$

Sherri$$s Designs has $2,000$ shares of common stock outstanding and net income per share for $2019$ was $$0\mathrm{.}63.$ The income tax rate is $30\%.$

Required:

a$.$ Prepare a single$-$step income statement.

b$.$ Prepare a multiple$-$step income statement.

Answer rating: 100% (QA)

Here are the requested income statements a Singles... View the full answer