An inexperienced accountant prepared this condensed income statement for Larkspur, Inc., a retail firm that has been in business for a number of years. Larkspur, Inc. Income Statement For the Year Ended December 31, 2022 Revenues Net sales Other revenues Cost of goods sold Gross profit Operating expenses Selling expenses Administrative expenses Net earnings $986,000 25,520 1,011,520 643,800 367,720 126,440 119,480 245,920 $121,800 B As an experienced, knowledgeable accountant, you review the statement and determine that the following steps were taken by the account se) ht or a hi the may ransa g to oply es (c

An inexperienced accountant prepared thiscondensed income statement for Larkspur, Inc, a retail firm that has been in business for a number of years 3. an experienced, knowledgeable accountant, you review the statement and determine that the following steps were taken by the 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. 1. Net sales, as presented, consist of sales $1,056,760, less frcight-cut on merchandise sold $38,280, and sales returns and allowances $32,480. 2. Other revenues, as presented, consist of sales discounts $20,880 and rent revenue $4,640. 3. Selling expenses, as presented, consist of salespersons' salaries $92,800; depreciation on equipment $11,600; advertising $15,080; and sales commissions $6,960. The commissions represent commissions paid. At December 31,$3,480 of commissions have been eamed by salespersons but have not been paid. All compensation should be recorded as Salaries and Wages Expense. 4. Administrative expenses, as presented, consist of office salaries $54,520; dividends $20,880; utilities $13,920; interest expense \$2.320; and rent expense \$27,840, which includes prepayments totaling \$6.960 for the first quarter of 2018 Prepare a correct detailed multiple-step income statement. Assume a 25% tax rate. (List other revenues before other expenses. Round onswers to 0 decimal places, eg. 5, 125.) It on goods ta higher in the goods a may return nensaction is E to grant an ply on May