The following are selected ledger accounts of Holland Rose Corporation at December 31, 2023:

Holland Rose’s effective tax rate on all items is 25%. A physical inventory shows that the ending inventory is $686,000. The number of common shares outstanding is 90,000.

InstructionsPrepare a condensed multiple-step 2023 income statement for Holland Rose, showing expenses by function. Holland Rose follows ASPE but decides to disclose EPS on its income statement.

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Cash Inventory (as at Jan. 1, 2023) Sales revenue Unearned revenue Purchases Sales discounts Purchase discounts Salaries and wages expense (sales) Salaries and wages expense (administrative) Purchase returns and allowances Sales returns and allowances Freight in Accounts receivable Sales commission expense $ 185,000 535,000 4,275,000 117,000 2,786,000 34,000 27,000 284,000 $ 346,000 15,000 79,000 72,000 142,500 83,000 Entertainment expense Office expense Insurance expense Advertising expense Freight out Depreciation expense of office equipment Depreciation expense of sales equipment Telephone and internet expense (sales) Utilities expense (administrative) Miscellaneous expense Rental revenue Loss on disposal of equipment Interest expense Common shares $ 69,000 33,000 24,000 54,000 93,000 48,000 36,000 $ 17,000 32,000 8,000 240,000 70,000 176,000 900,000