Identify the errors in the following income statement and prepare a corrected incomestatement: ARMORTEC COMPANY Income Staterment

Identify the errors in the following income statement and prepare a corrected incomestatement:

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ARMORTEC COMPANY Income Staterment For the Year Ended February 28, 2010 Revenue from sales: Sales $5,345,800 Add: Sales returns and allowances $120,000 Sales discounts 60,000 180,000 Gross sales $5,525,800 Cost of merchandise sold Income from operations Expenses: Selling expenses Administrative expenses Delivery expense Total expenses 3,100,800 $2,425,000 $ 800,000 600,000 50,000 1,450,000 $ 975,000 Other expense: Interest revenue 40,000 $ 935,000 Gross profit