Multiple-Step Income Statement Format					Single-Step Income Statement Format
	Blue Bird Enterprises Income Statement For the Year Ended December 31, 2002
Net Sales Revenues:
Sales Revenues			$212,000
	Sales discounts	$4,200
	Sales returns	200	(4,400)	$207,600
Cost of goods sold:
	Beginning inventory	$28,200
	Purchases	123,800
	Goods available for sale		$152,000
	Less: Ending inventory		(24,200)	(127,800)
Gross profit on sales				$79,800
Operating expenses:
	Selling expenses		$8,500
	General and administrative expenses		17,100	(25,600)
Income from operations				$54,200
Other Revenues and Gains:
	Rental revenue		$13,000
	Interest revenue		8,900	21,900
Other Expenses and Losses:
	Interest expense			(4,400)
Income from continuing operations before income taxes				$71,700
Income tax expense		40%		(28,680)
Income from continuing operations				$43,020
Discontinued operations:
	Income from operations of discontinued cosmetics
	division [net of income taxes of $54,000]		$81,000
	Loss on disposal of cosmetics division
	[net of income taxes of $12,000]		18,000	99,000
				$142,020
Extraordinary items:
Extraordinary gain on extinguishment of debt
[net of income taxes of $60,000]				90,000
				$232,020
Cumulative effect of an accounting changes:
Cumulative effect on prior years of retroactive
application of new inventory method
[net of income tax savings of $12,000]				(18,000)
	Net income			$214,020
				========
Earnings per share [200,000 shares]
	Income from continuing operations			$0.22
	Loss from discontinued operations			0.50
	Extraordinary gain			0.45
	Cumulative effect of an accounting change			(0.09)
	Net income			$1.08
				======

 

 

	Single-Step Income Statement Format
Blue Bird Enterprises Income Statement For the Year Ended December 31, 2002
Net Sales Revenues			$207,600
Rental revenue			13,000
Interest revenue			8,900
			$229,500
Cost of goods sold			$127,800
Selling expenses			8,500
General and administrative expenses			17,100
Interest expense			4,400
			$157,800
Income from continuing operations before income taxes			$71,700
Income taxes    [40%}			(28,680)
Income from continuing operations			$43,020
Discontinued operations:
	Income from operations of discontinued cosmetics
	division [net of income taxes of $54,000]: $81,000
	Loss on disposal of cosmetics division
	[net of income taxes of $12,000]: $18,000		99,000
			$142,020
Extraordinary items:
Extraordinary gain on extinguishment of debt
[net of income taxes of $60,000]			90,000
			$232,020
Cumulative effect of an accounting changes:
Cumulative effect on prior years of retroactive
application of new inventory method
[net of income tax savings of $12,000]			(18,000)
Net income			$214,020
			========
Earnings per share [200,000 shares]
		Income from continuing operations	$0.22
		Loss from discontinued operations	0.50
		Extraordinary gain	0.45	Multiple-Step Income Statement
		Cumulative effect of an accounting change	(0.09)
		Net income	$1.08
			======