Two accountants, Ben and Frank, are arguing about the merits of presenting an income statement in the multiple-step versus the single-step format. The discussion involves the following 2020 information for Sims Company (in thousands):

Officers' salaries $4,900 Delivery expense $2,690

Depreciation of office furniture and equipment 3,960 Sales Commissions 7,980

Cost of goods sold 60,570 Depreciation of sales equipment 6,480

Rental Revenue 17,230 Sales revenue 96,500

Interest expense 1,860

Common shares outstanding for 2020 total 30,550. Income tax for the year was $9,070.

(a) Prepare an income statement for the year ended December 31, 2020, using the multiple-step format. Include calculation of EPS

(b) Prepare an income statement for the year ended December 31, 2017, using the single-step format. Include calculation of EPS.

(c) Calculate the gross profit percentage

Answer rating: 100% (QA)

a Sims Company Single Step Income Statement For the year ended December 312020 Revenues and gains Sa... View the full answer