$12.$ Explain the Information presented to someone who is unfamiliar with an Income Statement.

Save$-$the$-$Earth Co$.$

Income Statement

For Year Ended December $31$

Sales

Less: Sales discounts

Sales returns and allowances

Net sales

Cost of goods sold

Gross profit

Expenses

Selling expenses

Sales staff salaries

Advertising expense.

Total selling expenses

General and administrative expenses

Office supplies expense.

Rent expense$-$Office space

Insurance expense

Office salaries expense

$\backslash (\backslash$frac$\{9,000\}\{10,000\}\backslash )$

$\backslash$$$20,000$

Total general and administrative expenses

Total expenses

Net income