5. Virgo Merchandising The following are the accounts of Regina Merchandising for December 31, 2017: Sales 4,000,000 Salaries Expense (80,000) Supplies Expense (120,000) Depreciation Expense (96,000) Utilities Expense (64,000) Insurance Expense (32,000) Rent Expense (144,000) Beginning Inventory 6,250 Purchases (187,500) Ending Inventory (12,500) Sales Discount (625) You were employed by the entity as its bookkeeper in its first year operations. You are now to prepare the necessary financial statements for the current year.

Accordingly, 25% of rent, depreciation and utility expenses pertain to the sales office while the rest pertains to the corporate office.

Instructions:

How much is the net sales for the year?

How much is the cost of sales for the year?

How much is the gross profit for the year?

How much is the net income for the year?

Prepare a statement of comprehensive income.