An inexperienced accountant prepared this condensed income statement for Cullumber Company, a retail firm that has been in business for a number of years. Cullumber Company Income Statement For the Year Ended December 31, 2025 Revenues Net sales 2. Other revenues Cost of goods sold Gross profit Operating expenses Selling expenses 1. Administrative expenses Net earnings $901,000 23,320 924,320 588,300 336,020 115,540 109,180 224,720 As an experienced, knowledgeable accountant, you review the statement and determine that the following steps were taken by the accountant to compute the amounts presented in the income statement. $111,300 Net sales, as presented, consist of sales $965,660, less freight-out on merchandise sold $34,980, and sales returns and allowances $29,680. Other revenues, as presented, consist of sales discounts $19.080 and rent revenue $4240

An inexperienced accountant prepared this condensed income statement for Cullumber Company, a retail firm that has been in business for a number of years. As an experienced, knowledgeable accountant, you review the statement and determine that the following steps were taken by the xccountant to compute the amounts presented in the income statement: 1. Net sales, as presented, consist of sales $965,660, less freight out on merchandise sold $34,960, and sales returns and allowances $29,680