The account balances for Grease Monkey Auto Supply, Inc., for the year ended December 31, 2016, are presented next in random order:

Requirements
1. Prepare Grease Monkey Auto Supply, Inc.'s single-step income statement.
2. Would you recommend the use of the single-step income statement format by a merchandiser? Why?

Cash. Equipment. Accounts Payable. $ 4,900 36,500 Cost of Goods Sold. $128,800 Accumulated Depreciation, Equipment. 7,600 2,500 265,000 5,100 4,200 15,000 23,400 Common Stock Unearned Revenues Long-Term Notes Payable. General Expenses.. Salaries Payable. Supplies. Building.. Sales Returns and Sales Revenue.. 21,800 3,100 1,200 155,000 Accounts Receivable Accumulated Depreciation, Building.. Mortgage Payable (Long-Term) Dividends.. 27,800 45,000 65,000 1,400 23,400 13,700 Allowances. 2,200 2,900 69,200 Prepaid Rent. Retained Earnings. Interest Expense Sales Discounts Selling Expenses Inventory. 900