In its income statement for the year ended December 31, 2014, Lemere Company reported the following condensed data.

Operating expenses

$ 725,000

Interest revenue

28,000

Cost of goods sold

1,289,000

Loss on disposal of plant assets

17,000

Interest expense

70,000

Net sales

2,200,000

Instructions

(a) Prepare a multiple step income statement.

(b) Prepare a single step income statement.