The following account titles and balances were taken from the adjusted trial balance of Brisco Farm Co. for 2012. The company uses the periodic inventory system.

Account Title Balance

Sales returns and allowances ...........$ 3,250

Miscellaneous expense ............ 400

Transportation-out ................ 700

Sales ................... 69,750

Advertising expense ............. 2,750

Salaries expense ................ 8,500

Transportation-in .............. 1,725

Purchases ................. 42,000

Interest expense ............... 360

Merchandise inventory, January 1 ........ 6,200

Rent expense ................. 5,000

Merchandise inventory, December 31 ...... 4,050

Purchase returns and allowances ........ 1,250

Loss on sale of land ............. 3,400

Utilities expense ................ 710

Required

a. Prepare a schedule to determine the amount of cost of goods sold.

b. Prepare a multistep income statement.

c. Prepare a single-step income statement.