Tisdale Incorporated reports the following amount in its December 31, 2012, income statement.

Sales revenue.............................$250,000

Income tax expense......................$ 20,000

Gain on land sale*.........................100,000

Cost of goods sold........................180,000

Selling expenses............................50,000

Administrative expenses....................30,000

General expenses............................40,000

*On July 12, 2012, the company sold land for $400,000 that it had previously purchased for $300,000, resulting in a $100,000 gain. This is the only land owned by the company.

Required:

1. Prepare a multiple-step income statement.

2. Explain how analyzing the multiple levels of profitability can help in understanding the future profit-generating potential of Tisdale Incorporated.