Multi Step $15M Pbm Item Build a Multi-Step Income Statement: Revenue from Sales Less (Returns) (Allowances) (Sales Discounts) Net Sales Item Sales Sales Return Sales Allowances Sales Discounts Purchases Purchases R&A Purchase discounts Transportation in Merchandise Inventory 4/1 Sales salaries expense Advertising expense Depreciation Expense-Store Ed Misc Selling Expense Office Salaries Expense Office Rent Expense Misc Admin Expense Miscellaneous Income Misc Interest Expense Merchandise Inventory 4/31 Amount 15,000,000 200,000 180,000 20,000 10,000,000 1,000,000 100,000 100,000 7,000,000 800,000 100,000 300,000 35,000 200.000 150,000 Cost of Merchandise (1) Purchased & (2) Sold Beginning Mdse Inventory Add: Purchases Less: Purchase Rtns/Allowances Less:Purchase Discounts Net Purchases Add: Transportation-In (1) Cost of Merchandise Purchased Mdse Available for Sale Less: Ending Inventory (2) Cost of Merchandise Sold Gross Profit 20,000 600 400 5,000,000 Operating Expenses: Net Income before tax