I have to prepare a multiple-step income statement and a single-step income statement for Elwes and Wright for the year 2007. The information I have is:
Administrative expense
Officers' salaries $4,900
Depreciation of office furniture and equipment 3,960

Cost of Goods Sold 60,570
Rental revenue 17,230

Selling expense
Transportation-out 2.690
Sales commissions 7,980
Depreciation of sales equipment 6,480

Sales 96,500
Income tax 9,070
Interest expense 1,860

Then in the instructions it says common shares outstanding for 2007 total 40,550 (000 omitted)

The multi-step income statement I came up with was:

Sales Revenue
Sales

$96500
Cost of Goods Sold
Cost of goods sold

(60570)
Gross Profit on sales

39530
Operating Expenses
Selling expenses
Transportation-out 2690
Sales cmmissions 7980
Dep. Of sales equipt. 6480
Total selling 17150
Administrative expenses
Officers' salaries 4900
Dep. Of office furt. And equipt. 3960
Total administrative 8860
Total operating expenses
(26010)
Income from operations

13520
Other revenues and gains
Rental revenue 17230

30750
Other expenses and losses
Interest expense (1860)
Income before income tax 28890
Income tax (9070)
Net Income $19820

The single-step income statement I came up with was:

Revenues
Sales 96500
Rental rev 17230

113730
Expenses
COGS 60570
Selling exps 17150
Admin exps 8860
Interest exp 1860
Income tax exp 9070

(97510)
Net Income $16220


Im not sure what to do with the common shares outstanding for 2007 total 40,550 (000 omitted). If anyone could tell me what I did wrong, I would really appreciate it.

They give you the # of C/S outstanding to figure out the EPS (earnings per share) This comes after your Net Income... So in your answer you would take your Net Income and subtract and preferred dividends, which I don't think you had, and you divide that by the common shares outstanding. I didn't look over your numbers, but it would be 19820/40,550= $0.49