5 of 5 < 3.33/5 E An inexperienced accountant prepared this condensed income statement for Sunland Company, a retail firm that has been in business for a number of years. Sunland Company Income Statement For the Year Ended December 31, 2022 Revenues Net sales $1,054,000 Other revenues 27.280 1081.280 Cost of goods sold 688,200 Gross profit 393,080 Operating expenses Selling expenses 135.160 Administrative expenses 127,720 262.880 $130,200 Net earnings As an experienced, knowledgeable accountant, you review the statement and determine that the following steps were taken by the accountant to compute the amounts presented in the income statement. Question 5 of 5 < 3.33/5 As an experienced, knowledgeable accountant, you review the statement and determine that the following steps were taken by the accountant to compute the amounts presented in the income statement. 1. Net sales, as presented, consist of sales $1.129,640, less freight-out on merchandise sold $40,920, and sales returns and allowances $34,720. 2 3. 4 Other revenues, as presented, consist of sales discounts $22.320 and rent revenue $4,960. Selling expenses, as presented, consist of salespersons' salaries $99,200: depreciation on equipment $12.400; advertising $16.120; and sales commissions $7,440. The commissions represent commissions paid. At December 31, $3,720 of commissions have been earned by salespersons but have not been paid. All compensation should be recorded as Salaries and Wages Expense. Administrative expenses, as presented, consist of office salaries $58,280, dividends $22.320; utilities $14,880; interest expense $2.480; and rent expense $29.760, which includes prepayments totaling $7,440 for the first quarter of 2018 Prepare a correct detailed multiple-step income statement. Assume a 25% tax rate. (List other revenues before other expenses. Round answers to O decimal places, eg. 5,125.) Sunland Company Income Statement For the Year Ended December 31,2022 Sales Sales Revenue 1,129,640 Sales Sales Revenue Less Sunland Company Income Statement For the Year Ended December 31, 2022 Sales Discounts Sales Returns and Allowances 22330 34,720 Net Sales Cost of Goods Sold Gross Profit Operating Expenses Salaries and Wages Expense 168.640 3.33/5 E 1,129,640 88,200 Question 5 of 5 Salaries and Wages Expense 168640 Advertising Expense Depredation Expense Bent Expense Utilities Expense Total Operating Expenses Income From Operations Other Revenues and Gains Rent Revenue Other Expenses and Losses interest Expense lecome Before Income Taxes 22.320 3.33/5 E Question 5 of 5 Income From Operations Other Revenues and Gains Rent Revenue Other Expenses and Losses Interest Expone Income Before Income Taxes Income Tax Expense Net Income/(Loss) 3.33/5 !!! E eTextbook and Media Assistance Used