Two accountants for the firm of Allen and Wright are arguing about the merits of presenting an income statement in a multiple step versus a single step format. The discussion involves the following 2012 information related to Webster Company ($000 omitted).
Administrative expense
Officer’s salaries $ 5,320
Depreciation of office furniture and equipment 4,460
Cost of goods sold 60,950
Rental revenue 18,060
Selling expense
Transportation out 2,690
Sales commissions 7,980
Depreciation of sales equipment 6,480
Sales 97,620
Income tax 9,070
Interest expense 1,860
(a) Prepare an income statement for the year 2012 using the multiple step form. Common shares outstanding for 2012 total 40,550 (000 omitted)