The following account balances are taken from Ballistik Ltd.’s adjusted trial balance at January 31, 2020:

Required

a. Prepare a single-step statement of income for the year ended January 31, 2020.

b. Prepare a multi-step statement of income for the year ended January 31, 2020.

c. Compare the two statements and comment on the usefulness of each one.

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Debit Credit Sales revenue $5,275,000 $ 175,000 Wages expense Cost of goods sold 3,645,000 General and administrative expenses 66,000 Utilities expenses 105,000 95,000 Depreciation expense Interest expense 33,000 Interest revenue 50,000 Income tax expense 150,700 Advertising ex pense 125,000 Selling expenses 196,000