The following are selected items for Albertson Company as of December 31, 2016:

The merchandise inventory on December 31, 2016, is $31,000. Ten thousand shares of common stock have been outstanding the entire year. Albertson uses a periodic inventory system.
Required:
Assuming a 30% income tax rate on all items of income, prepare Albertson€™s 2016 income statement using
(1) A multiple-step format and
(2) A single-step format.

Transcribed Image Text:

$63,000 Sales (ne) $100,000 22,000 Purchases (net) Merchandise inventory, January 1, 2016 0 Gain on sale of equipment 0,000 Operating expenses 5,000