Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2020 information related to P. Bride Company ($000 omitted).

Administrative expense
Officers’ salaries.........................................................................$ 4,900
Depreciation of office furniture and equipment.......................3,960
Cost of goods sold.......................................................................60,570
Rent revenue................................................................................17,230
Selling expense
Delivery expense...........................................................................2,690
Sales commissions........................................................................7,980
Depreciation of sales equipment................................................6,480
Sales revenue...............................................................................96,500
Income tax......................................................................................9,070
Interest expense............................................................................1,860

Instructions

a. Prepare an income statement for the year 2020 using the multiple-step form. Common shares outstanding for 2020 total 40,550 (000 omitted).

b. Prepare an income statement for the year 2020 using the single-step form.

c. Which one do you prefer? Discuss.