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. The discussion involves the following 2020 information for P. Bride Company (in thousands):

Common shares outstanding for 2020 total 30,550. Income tax for the year was $9,070.

Instructions

a. Prepare an income statement for the year ended December 31, 2020, using the multiple-step format. Include calculation of EPS.

b. Prepare an income statement for the year ended December 31, 2020, using the single-step format. Include calculation of EPS.

c. Digging Deeper 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 is preferred? Explain why.

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