Answer:
1. Multi-step income statement Internal Reporting Purposes
Sales Revenue                                                                  258,500
Less Sales Returns and Allowances                                  (8,700)
Less Sales Discounts                                                          (11,400)
Net Sales                                                                            238,400
Less Cost of Goods Sold                                                  (138,800)
Gross Profit                                                                          99,600
Less Operating Expenses :
Salaries and Wages Expense                          23,800
Office Expense                                                  24,800    (48,600)
Operating Income/(loss)                                                     51,000
Less Non- Operating Expenses :
Interest Expenses                                              3,700
Income Tax Expense                                         14,190     (17,890)
Net Income/Loss                                                                 33,100
2. Multi-step income statement External Reporting Purposes
Net Sales                                                                            238,400
Less Cost of Goods Sold                                                  (138,800)
Gross Profit                                                                          99,600
Less Operating Expenses :
Salaries and Wages Expense                          23,800
Office Expense                                                  24,800    (48,600)
Operating Income/(loss)                                                     51,000
Less Non- Operating Expenses :
Interest Expenses                                              3,700
Income Tax Expense                                         14,190     (17,890)
Net Income/Loss                                                                 33,100
Explanation:
It is important to remember that a multi-step income statement shows separately profit earned from <em>Primary Activities</em> of the firm and that earned from <em>Secondary Activities</em>.
There are no strict rules for preparation of Financial Statements for <em>Internal use</em> and this may include many other line items. However for <em>external reporting</em> proposes, preparers of financial statements have to comply with Accounting Standards (GAAP or IFRS).