Notes & LO$5-3$

Highlights Cloud Comfort, Inc.

Preparing a Multiple$-$Step Income Statement with Discontinued Operations $($AP$5-7)$

Cloud Comfort, Inc., researches, designs, manufactures, and distributes interior furnishings for use in various environments including office, health care, educational, and residential

settings. The items reported on its income statement for the year ended December $31,2020,$ are presented here $($dollars in millions$)$ in alphabetical order:

Source: Cloud Comfort, Inc.

Required:

Using appropriate headings and subtotals, prepare a multiple$-$step consolidated income statement $($showing gross profit, operating income, and any other subheadings you deem

appropriate$).$