Please do not give solution in image format ? ncesRequired:1. Prepare an income statement on the basis of nature of expense, using a single-step format. (Loss amounts should be indicated by aminus sign.)2Revenues and gains:BookOther expenses and losses:PrintTotal revenues and gainsExpenses and losses:Operating and administrative expenses:Other expenses and losses:Total expenses and lossesEarnings from continuing operationsShow Transcribed TextNet income and comprehensive incomeferencesMONTREAL RETAIL CORPORATIONIncome StatementYear Ended 31 December 20X6(in Canadian dollars)Net sales.2. Prepare an income statement on a functional basis in a multiple-step format. (Loss amounts should be indicated by a minus sign.)Show Transcribed TextNet salesMONTREAL RETAIL CORPORATIONIncome StatementYear Ended 31 December 20X6(in Canadian dollars)Operating and administrative expenses:Total operating and administrative expenses.Income from operationsOther revenues and gains:Other expenses and losses:Show Transcribed Text2. Prepare an income statement on a functional basis in a multiple-step format. (Loss amounts should be indicated by a minus sign.)Income from operationsOther revenues and gains:Total operating and administrative expensesOther expenses and losses:Income before income taxMONTREAL RETAIL CORPORATIONIncome StatementYear Ended 31 December 20X6(in Canadian dollars)3Income before discontinued operation3Net income and comprehensive income$c30C000000$000000 SThe information below pertains to the operations of Montreal Retail Corporation for the year ended 31 December 20X6:Cost of merchandise soldInventory warehousing costAccounts payableSales revenueAccumulated depreciationSales returnsUnearned revenueDepreciation expenseRent revenueEmployee wages, salaries, and benefitsInterest expenseInvestment revenueLoss on disposal of geographic segmentEarnings from discontinued geographic segmentDistribution expensesGeneral and administrative expensesLoss on sale of noncurrent assetsIncome tax expenseFire loss$115,00033,000133,000655,000153,0006,3003,30063,0005,300113,0007,3004,30043,00033,000119,00059,00014,300?33,000Additional information:• Functional costs do not include depreciation or employee costs.Depreciation expense pertains 55% to warehousing cost, 30% to administrative costs, and 15% to distribution expense.Employee wages, salaries, and benefits pertain 25% to warehousing and merchandising, 40% to administrative costs, and 35% todistribution expense.• The company's income tax rate is 25%. Assume that the tax rate pertains to all elements of revenue, expense, gain, and loss.

An income statement, together with the balance sheet and the CFS, is one of the three key financial…

The information below pertains to the operations of Montreal Retail Corporation for the year ended 31 December 20X6: Cost of merchandise sold Inventory warehousing cost Accounts payable Sales revenue Accumulated depreciation Sales returns Unearned revenue Depreciation expense Rent revenue Employee wages, salaries, and benefits Interest expense Investment revenue Loss on disposal of geographic segment Earnings from discontinued geographic segment Distribution expenses General and administrative expenses Loss on sale of noncurrent assets Income tax expense Fire loss $115,000 33,000 133,000 655,000 153,000 6,300 3,300 63,000 5,300 113,000 7,300 4,300 43,000 33,000 119,000 59,000 14,300 ? 33,000 Additional information: • Functional costs do not include depreciation or employee costs. • Depreciation expense pertains 55% to warehousing cost, 30% to administrative costs, and 15% to distribution expense. • Employee wages, salaries, and benefits pertain 25% to warehousing and merchandising, 40% to administrative costs, and 35% to distribution expense. • The company's income tax rate is 25%. Assume that the tax rate pertains to all elements of revenue, expense, gain, and loss.