The following information is available for Wright Auto Supply at December 31, 2019.

Required:

1. Prepare a single-step income statement for the year ended December 31, 2019.

2. Prepare a multiple-step income statement for the year ended December 31, 2019.

3. Comment on the differences between the single-step and the multiple-step income statements.

Cost of goods sold Depreciation expense Income taxes expense Interest expense $292,000 31,250 32,520 2,400 Rent expense Salaries (administrative) Sales revenue Wages expense (salespeople) $ 21,000 585,600 96,750