P4-41A (Learning Objective 2, 4: Aggregating information for presentation on the income statement) Ryan's Home Repair Services had the following balances at the end of 20x4 and 2005. Ryan's Home Repair Services Partial account listing and balances as at December 31, 20x5 and 20X4 20x5 20X4 Sales revenue $40,900 $32,400 Service revenue 21,200 17.900 Interest income 3,900 2.300 Cost of goods sold 17,500 13.700 Wages and salaries 12,200 10,500 Depreciation 2,900 2,900 Supplies expense 8,700 7,500 Interest expense 400 500 Motor vehicle expense 4,100 3,500 Fuel expense 2,400 1,700 Utilities expense 1,700 2,100 Advertising expense 3,100 3,700 Tax expense 2,600 1,300 Requirements 1. Assuming that Ryan would like to disclose no more than what is required by accounting standards, with the maximum level of aggregation possible, prepare an income statement to such effect. 2. Why would it not be possible for Ryan to simply show a three-line income statement, one that simply lists total revenue, total expenses and net profit? 3. How should Ryan decide which line items are important enough to be shown separately on the income statement and which ones to aggregate