The following account balances are taken from Sherwood Ltd.’s adjusted trial balance at June 30, 2024:

Required 

a. Prepare a single-step statement of income for the year ended June 30, 2024. 

b. Prepare a multi-step statement of income for the year ended June 30, 2024. 

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

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Sales revenue Advertising expense Cost of goods sold General and administrative expenses Selling expenses Depreciation expense Interest expense Interest revenue Income tax expense Wages expense Utilities expense Debit $125,000 596,000 40,000 75,000 70,000 37,000 10,700 165,000 106,000 Credit $1,250,000 44,000