Answer:
See explanation
Explanation:
                        Armstrong Co.
           Multi-step Income Statement
   For the year ended, December 31, 20YY
Sales                                              $755,000
<u>Less: Cost of merchandise sold   (330,000)</u>
Gross Profit                                                    $425,000
Less: Operating expenses
Administrative expenses  $35,000
Selling expenses               $50,000
<em><u>Total operating expenses                               $85,000</u></em>
Income from operation                                 $340,000
Other revenue and expenses:
Rent Revenue                    $25,000
interest expense               ($30,000)
<u>Total other revenues (expenses)                      $(5,000)</u>
Income before taxes                                      $335,000
<u>Less: Income Tax                                                     0</u>
Net Income (loss)                                           $335,000
That is the appropriate way to prepare a multi-step income statement