$\backslash$table$[[,],[,],[,],[,],[,]]\backslash$right$.$

E$3\mathrm{.}4($LO $1)($Single$-$Step Income Statement$)$ The financial records of LeRol Jones Inc. were destroyed by fire at the end of $2025.$ Fortunately, the controller had kept certain statistical data related to the income statement as follows.

The beginning merchandise inventory was $$92,000$

and decreased $20\%$ during the current year. e

Sales discounts amount to $$17,000.$

$20,000$ shares of common stock were outstanding for the entire year.

Interest expense was $$20,000.$

The income tax rate is $30\%.$

Cost of goods sold amounts to $$500,000.$

Administrative expenses are $20\%$ of cost of goods sold but only $8\%$ of gross sales.

Four$-$fifths of the operating expenses relate to sales activities.

Instructions

From the foregoing information prepare an income statement for the year $2025$ in single$-$step form. explain point $8$ in detail