Two accountants, Yuan Tsui and Sergio Aragon, are arguing about the merits of presenting an income statement in the multiple-step versus the single-step format, and presenting expenses in the nature or function of expense format. The discussion involves the following 2014 information for Singh Corp. (in thousands):

Common shares outstanding for 2014 total 30,550,000. The effective tax rate on all income is 30%.
Instructions
(a) Prepare an income statement for the year ended December 31, 2014, using the multiple-step format, showing expenses by function. Include calculation of EPS.
(b) Prepare an income statement for the year ended December 31, 2014, using the single-step format, showing expenses by nature. Include calculation of EPS.
(c) From the perspective of an investor who is interested in information about operating versus non-operating items and the various areas of the company's operations, which format and classification of expenses is preferred? Explain why.

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Administrative expenses Selling expenses 3,900 Salaries and wages Depreciation of office furniture and equipment Rent 3,560 16,200 58,570 15,230 Freight-out Salaries and wages Depreciation of sales equipment Advertising $ 2,290 67,280 6,480 42,500 306,500 1,860 Cost of goods sold Rental revenue Sales revenue Interest expense on bonds payable