Identify the errors in the following income statement: Keepsakes Company Income Statement For the Year Ended February

Identify the errors in the following income statement:

Transcribed Image Text:

Keepsakes Company Income Statement For the Year Ended February 29, 2012 Revenue from sales: Sales...... $7,200,000 Add: Sales returns and allowances $275,000 Sales discounts 130,000 405,000 Gross sales .... $7,605,000 Cost of merchandise sold.. Income from operations... 4,075,000 $3,530,000 Expenses: Selling expenses.. Administrative expenses Delivery expense Total expenses $ 950,000 475,000 125,000 1,550,000 $1,980,000 Other expense: Interest revenue 30,000 $1,950,000 Gross profit....