The following list of accounts is taken from the December 31, 2014, unadjusted trial balance of Perdu Sales, a business that is owned by Eldon Perdu.

Additional information:
Accrued sales salaries amount to $3,200. Prepaid selling expenses of $5,200 have expired. Depreciation for the period is $2,500.
Required
Assuming a perpetual inventory system:
a. Prepare a work sheet.
b. Prepare a classified multiple-step income statement for the year ended December 31, 2014.
c. Journalize the closing entries.
Analysis Component:
Assume that for the year ended December 31, 2013, net sales were $600,000; operating expenses were $344,000; and there was a net loss of $14,000. Calculate and compare the company's gross profit ratios for 2013 and 2014.