E5-10 Prepare multiple-step and single-step income statement

In its income statement for the year ended December 31, 2017, Anhad Company reported the following
condensed data.

Operating Expenses $725,000

Cost of goods sold 1,289,000
Interest expense 70,000

Instructions:
(a) Prepare a multiple-step income statement.
(b) Prepare a single-step income statement.

Anhad Company
Income Statement(Multi-Step)
For the Year Ended December 31, 2017
a
Sales Revenue
Net Sales 2,200,000
Less: Cost of Goods Sold
Cost of Goods Sold 1,289,000
Gross Profit 911,000
Less: Operating expense
Operating expense 725,000
Income from operations 186,000
Add: Other revenues and gains
Interest revenue 28,000
214,000
Less: Other expense and losses
Interest expense 70,000
Loss on disposal of plant assets 17,000 87,000
Net Income 127,000

Anhad Company
Income Statement(Single-Step)
For the Year Ended December 31, 2017
b
Revenue
Net Sales 2,200,000
Interest revenue 28,000
Total Revenues 2,228,000
Less: Expenses
Cost of goods sold 1,289,000
Operating expense 725,000
Interest expense 70,000
Loss on disposal of plant assets 17,000
Total Expenses 2,101,000
Net Income 127,000
eported the following

Interest revenue $28,000

Loss on disposal of plant 17,000
Net sales 2,200,000