Q1: Use the following multi-step income statement of Ancho Company to prepare a single-step version.Income StatementFor the Year Ended December 31, 2022SalesSales revenue........................................................................ $98,000Less: Sales returns and allowances .................................. 2,000Net sales ............................................................................... $96,000Cost of goods sold................................................................. 42,000 Gross profit................................................................ 54,000Operating expenses . 14,000Income from operations......................................................... 40,000Other revenues and gains Interest revenue......................................................... 1,000Other expenses and losses Loss on sale of equipment........................................ 500Net income............................................................................ $40,500 Q1: Use the following multi-step income statement of Ancho Company to prepare a single-stepversion.Income StatementFor the Year Ended December 31, 2022SalesSales revenue.Less: Sales returns and allowances$98,0002,000$96,00042.00054,00014,00040,000Net salesCost of goods sold.Gross profit .Operating expensesIncome from operations.Other revenues and gainsInterest revenue.Other expenses and losses1,000Loss on sale of equipment..500Net income..$40,500

Formula: Net Income = Total Revenues - Total Expenses.

Use the following multi-step income statement of Ancho Company to prepare a single-step version. Income Statement For the Year Ended December 31, 2022 Sales Sales revenue........................................................................ $98,000 Less: Sales returns and allowances .................................. 2,000 Net sales ............................................................................... $96,000 Cost of goods sold................................................................. 42,000 Gross profit................................................................ 54,000 Operating expenses . 14,000 Income from operations......................................................... 40,000 Other revenues and gains Interest revenue......................................................... 1,000 Other expenses and losses Loss on sale of equipment........................................ 500 Net income............................................................................ $40,500