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Two accountants for the firm of Elwes and Wright are arguing about the merits of...

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Accounting

Two accountants for the firm of Elwes 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 2020 information related to Metlock Company ($000 omitted).

Administrative expense

Officers' salaries

 $5,401

Depreciation of office furniture and equipment

 4,461

Cost of goods sold

 61,071

Rent revenue

 17,731

Selling expense

Delivery expense

 3,191

Sales commissions

 8,481

Depreciation of sales equipment

 6,981

Sales revenue

 97,001

Income tax

 9,571

Interest expense

 2,361

Common shares outstanding for 2020 total 26,428 (000 omitted).

(a)

Prepare an income statement for the year 2020 using the multiple-step form. (Round earnings per share to 2 decimal places, e.g. 1.48.)

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