The following balances were taken from the books of Quality Fabrication Limited on December 31, 2023:

InstructionsPrepare a multiple-step income statement showing expenses by function. Assume that 150,000 common shares were outstanding during the year. Quality Fabrication follows ASPE but decides to disclose EPS on its income statement.

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Interest income Cash Sales revenue Accounts receivable Prepaid insurance Sales returns and allowances 1,120,000 122,000 16,000 118,000 Bonds payable 6,000 Administrative expenses Unearned revenue 40,000 80,000 Interest expense 160,000 Notes payable 115,000 Loss from storm damage 504,000 Depreciation expense Assume the total effective tax rate on all items is 25%. Allowance for doubtful accounts Sales discounts Land $ 70,000 Accumulated depreciation equipment 40,000 Accumulated depreciation-buildings Equipment Buildings Cost of goods sold Notes receivable Selling expenses Accounts payable $ 32,000 23,000 125,000 160,000 140,000 81,000 80,000 16,000 50,000 80,000 124,000 50,000