The accountant of Latifa Shoe Co. has compiled the following information from the company’s records as a basis for an income statement for the year ended December 31, 2014.
Rent revenue .................... $ 29,000
Interest expense ..................... 18,000
Market appreciation on land above cost ........... 31,000
Salaries and wages expense (selling) ........... 114,800
Supplies (selling) ................... 17,600
Income tax ....................... 37,400
Salaries and wages expense (administrative) ........ 135,900
Other administrative expenses .............. $ 51,700
Cost of goods sold .................. 496,000
Net sales ...................... 980,000
Depreciation on plant assets (70% selling, 30% administrative) . 65,000
Cash dividends declared ................. 16,000

There were 20,000 shares of common stock outstanding during the year.

Instructions
(a) Prepare a multiple-step income statement.
(b) Prepare a single-step income statement.
(c) Which format do you prefer? Discuss.