A part-time bookkeeper prepared this income statement for Sima Nan Company for the year ending December 31, 2001:

As an experienced, knowledgeable accountant, you review the statement and determine the following facts:
1. Sales include $10,000 of deposits from customers for future sales orders.
2. Other revenues contain two items: interest expense $4,000 and interest revenue $5,300.
3. Selling expenses consist of sales salaries $76,000, advertising $10,000, depreciation on store equipment $7,500, and sales commissions expense $6,500.
4. Administrative expenses consist of office salaries $19,000; utilities expense $8,000; rent expense $16,000; and insurance expense $7,000. Insurance expense includes $1,200 of insurance applicable to 2002.
Instructions Prepare a correct detailed multiple-step income statement.

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SIMA NAN COMPANY Income Statement December 31, 2001 Revenues Sales $702,000 Less: Freight-out $10,000 Sales discounts 11,300 21,300 Net sales 680,700 Other revenues (net) 1,300 Total revenues 682,000 Expenses Cost of goods sold " 470,000 Selling expenses Administrative expenses Dividends Total expenses Net income 100,000 50,000 12,000 632,000 $ 50,000