Problem #1 (Multiple-step and Single-step) (50 points) Two accountants for the accounting firm of Pham and Pun are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2017 information related to Saghir Company ($000 omitted).

Instructions:

1. Prepare an income statement for the year 2017 using the multiple-step form. Common shares outstanding for 2017 total 40,550 (000 omitted).
2. Prepare an income statement for the year 2017 using the single-step form.

Administrative expense $6,860 5,544 84,798 24,122 Officers' salaries Depreciation of office furniture and equipment Cost of goods sold Rental revenue Selling expense Transportation-out Sales commissions Depreciation of sales equipment 3,766 11,172 9,072 135,100 12,698 2,604 Sales Income tax Interest expense