A part-time bookkeeper prepared this income statement for Kritek Company for the year ending December 31, 2012.

As an experienced, knowledgeable accountant, you review the statement and determine the following facts.1. Sales include $12,000 of deposits from customers for future sales orders.2. Other revenues contain two items: interest expense $4,000 and interest revenue $5,300.3. Selling expenses consist of sales salaries and wages $82,500, advertising $13,000, and depreciation on store equipment $7,500.4. Administrative expenses consist of office salaries $23,000; utilities expense $9,500; rent expense $14,500; and insurance expense $7,000. Insurance expense includes $1,200 of insurance applicable to 2013.InstructionsPrepare a correct detailed multiple-step income statement. Assume a tax rate of25%.

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KRITEK COMPANY Income Statement December 31, 2012 Revenues Sales revenue $720,000 Less: Freight-out Sales discounts $14,000 25,300 11,300 Net sales 694,700 1,300 Other revenues (net) Total revenues 696,000 Expenses Cost of goods sold Selling expenses Administrative expenses Dividends 460,000 103,000 54,000 12,000 Total expenses 629,000 $ 67,000 Net income