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An inexperienced accountant prepared this condensed income statement for Sandhill Co., a retail firm that has been in business for a number of years. Sandhill

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An inexperienced accountant prepared this condensed income statement for Sandhill Co., a retail firm that has been in business for a number of years. Sandhill Co. Income Statement For the Year Ended December 31, 2022 Revenues Net sales $833,000 Other revenues 21,560 854,560 Cost of goods sold 543.900 Gross profit 310,660 Operating expenses Selling expenses 106,820 Administrative expenses 100.940 207.760 Net earnings $102.900 As an experienced, knowledgeable accountant, you review the statement and determine the following facts. 1. 2. 3 Net sales consist of sales $892,780, less freight-out on merchandise sold $32,340, and sales returns and allowances $27.440. Other revenues consist of sales discounts $17,640 and rent revenue $3,920. Selling expenses consist of salespersons' salaries $78,400, depreciation on equipment $9,800, advertising $12,740, and sales commissions $5,880. The commissions represent commissions paid. At December 31, $2,940 of commissions have been earned by salespersons but have not been paid. All compensation should be recorded as Salaries and Wages Expense. Administrative expenses consist of office salaries $46,060, dividends $17,640, utilities $11.760, interest expense $1,960, and rent expense $23,520, which includes prepayments totaling $5,880 for the first quarter of 2018. 4. Prepare a correct detailed multiple-step income statement. Assume a 25% tax rate (List other revenues before other expenses. Round answers to 0 decimal places, e.3.5,125. Enter negative amounts using either a negative sign preceding the number e.3.-45 or parentheses e 3. (45).) SANDHILL CO. Income Statement For the Year Ended December 31, 2022 Sales Sales Revenue 892.780 Less SANDHILL CO. Income Statement For the Year Ended December 31, 2022 Sales Sales Revenue 892,780 Less : Sales Returns and Allowances $ 27.440 Sales Discounts 17,640 847,700 Gross Proht 310,660 Cost of Goods Sold 543.900 Operating Expenses Cost of Goods Sold 543.900 Operating Expenses + I + $

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