Preparing a Multiple-Step Income Statement

The following data were taken from the records of Cofelt Appliances, Incorporated, at December 31, 2011:

Sales revenue                                      $130,000

Administrative expense                       17,000

Selling (distribution) expense              19,000

Income tax rate                                    30%

Gross profit                                          60,000

Shares of stock outstanding                 2,500

Required:

Prepare a complete multiple-step income statement for the company (showing both gross profit and income from operations). Show all computations.