A part-time bookkeeper prepared this income statement for Chowdhury Company for the year ending December 31, 2010.

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 $76,000, advertising $13,000, depreciation on store equipment $7,500, and sales commissions expense $6,500.
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 $800 of insurance applicable to 2011.

Instructions
Prepare a correct detailed multiple-step income statement. Assume a tax rate of20%.

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CHOWDHURY COMPANY Income Statement December 31, 2010 Revenues $712,000 Sales Less: Freight-out Sales discounts $14,000 11,300 25,300 686,700 1,300 688,000 Net sales Other revenues (net) Total revenues Expenses Cost of goods sold Sell 460,000 103,000 54,000 12,000 629,000 59,000 ing expenses Administrative expenses Dividends Total expenses Net income