E$5-10$ Prepare multiple$-$step and single$-$step income statement

In its income statement for the year ended December $31,2015,$ Lemere Company reported the following condensed data.

Operating Expenses

Cost of goods sold

Interest expense

$$725,000$

$1,289,000$

$70,000$

Interest revenue

Loss on disposal of plant assets

Net sales

$$28,000$

$17,000$

$2,200,000$

Instructions:

$($a$)$ Prepare a multiple$-$step income statement.

$($b$)$ Prepare a single$-$step income statement.

NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a $"?".$

$($a$)$

Multiple$-$step income statement

LEMERE COMPANY

Income Statement

For the Year ended December $31,2015$

Net sales

Cost of goods sold

Gross profit

Operating expenses

Income from operations

Other revenues and gains

Interest revenue

Other expenses and losses

Interest expense

Loss on disposal of plant assets

Net income

$($b$)$ Single$-$step income statement

LEMERE COMPANY

Income Statement

For the Year ended December $31,2015$

After you have completed the requirements of E$5-10,$ consider the additional question.

Answers are on the other tab in this file.

Suppose cost of goods sold changed to $$1,320,000.$ What impact does this have on net income, as determined using both the multiple$-$step and single$-$step income statements?