1. DITO Company provided the following information for 2019. Purchases 5,250,000.00 Purchases returns and allowances 150,000.00 250,000.00 Rental income Selling expenses: Freight out Salesmen's commission Depreciation - store equipment Merchandise inventory, January 1 Merchandise inventory, December 31 Sales Sales returns and allowances Sales discounts Administrative expenses Officers' salaries Depreciation - Office equipment Freight in Income tax Loss on sale of equipment Purchase discounts Dividend revenue Loss on sale of investment 175,000.00 650,000.00 125,000.00 1,000,000.00 1,500,000.00 7,850,000.00 140,000.00 10,000.00 500,000.00 300,000.00 500,000.00 250,000.00 50,000.00 100,000.00 150,000.00 50,000.00 Required: Prepare an income statement using "functional method" for the year with supporting notes