The following amounts appeared on Plymouth Electronics’ adjusted trial balance as of December 31, 2020.

Required

1. Prepare a 2020 classified multiple-step income statement for Plymouth Electronics, like Exhibit 5.13.

2. Prepare a single-step income statement, like Exhibit 5.15.

Analysis Component: The gross profit ratio for Plymouth Electronics’ year ended December 31, 2019, was 32%. Calculate this ratio for the year ended December 31, 2020, and compare it to the prior year, commenting on whether the change was favourable or unfavourable.

Exhibition 5.13

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Credit Debit $ 19,500 Merchandise inventory Other assets 487,785 $ 312,370 Liabilities. Celine Plymouth, capital. Celine Plymouth, withdrawals. 247,605 67,000 Sales. 942,000 Sales discounts. 14,580 Sales returns and allowances. Interest income. 5,715 720 Cost of goods sold. 719,000 Sales salaries expense. Office salaries expense 79,200 56,500 Rent expense, selling space. 33,000 Rent expense, office space 3,000 Store supplies expense. 1,620 Office supplies expense. 735 Depreciation expense, store equipment 8,910 Depreciation expense, office equipment 2,760 Insurance expense 3,390 Totals. $1,502,695 $1,502,695