The accountant of Weatherspoon Shoe Co. has compiled the following information from the company's records as a basis for an income statement for the year ended December 31, 2019.

Rent revenue....................................................................£ 29,000

Interest expense...................................................................18,000

Unrealized gain on non-trading equity securities, net of tax...............31,000

Selling expenses.................................................................140,000

Income tax........................................................................30,600

Administrative expenses.......................................................181,000

Cost of goods sold..............................................................516,000

Net sales..........................................................................980,000

Cash dividends declared.........................................................16,000

Loss on sale of plant assets.......................................................15,000

There were 20,000 ordinary shares outstanding during the year.

Instructions

a. Prepare a comprehensive income statement using the combined statement approach.

b. Prepare a comprehensive income statement using the two statement approach.

c. Which format do you prefer? Discuss.