Refer to the situation described in BE 4–1. Using the account balances, prepare a multiple-step income statement for 2021. An example of a multiple-step income statement can be found in Illustration 4–4 of this chapter.

BE 4–1

The adjusted trial balance of Pacific Scientific Corporation on December 31, 2021, the end of the company’s fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,106; cost of goods sold, $1,240; selling expense, $126; general and administrative expense, $105; interest expense, $40; and gain on sale of investments, $45. Income tax expense has not yet been recorded. The income tax rate is 25%.