Question: Tisdale Incorporated reports the following amount in its December 31, 2012, income statement.

- Sales revenue                        $250,000                 Income tax expense                      $ 20,000

- Gain on land sale*                    100,000                 Cost of goods sold                          180,000

- Selling expenses                        50,000                 Administrative expenses                     30,000

- General expenses                       40,000

*On July 12, 2012, the company sold land for $400,000 that it had previously purchased for $300,000, resulting in a $100,000 gain. This is the only land owned by the company

Required: 1. Prepare a multiple-step income statement.

2. Explain how analyzing the multiple levels of profitability can help in understanding the future profit-generating potential of Tisdale Incorporated.