Data taken from the accounting records of Sherri’s Designs on December 31 are shown.

Operating expenses	$1,000
Sales revenue	5,000
Inventory, Jan. 1, 2019	1,600
Purchases	1,200
Interest revenue	250
Loss on disposal of a discontinued component of the business(pre-tax)	400
Inventory, Dec. 31, 2019	750
Income tax expense	660

Sherri’s Designs has 2,000 shares of common stock outstanding and net income per share for 2019 was $0.63. The income tax rate is30%.

Required:

a.	Prepare a single-step income statement.
b.	Prepare a multiple-step income statement.

Answer rating: 100% (QA)

Solution Requirement a Income statement Single step Revenues Sales revenue 5000 Interest reve... View the full answer