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

Problem 5-5A 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, 2017 Revenues Net sales $1,207,000 31,240 1,238,240 788,100 450,140 Other revenues Cost of goods sold Gross profit Operating expenses Selling expenses Administrative expenses Net earnings As an experienced, knowledgeable accountant, you review the statement and determine the following facts. 154,780 146,260 301,040 $149,100 1. Net sales consist of sales $1,293,620, less freight-out on merchandise sold $46,860, and sales returns and allowances $39,760. 2. Other revenues consist of sales discounts $25,560 and rent revenue $5,680 3. Selling expenses consist of salespersons' salaries $113,600; depreciation on equipment $14,200; advertising $18,460; and sales commissions $8,520. The commissions represent commissions paid. At December 31, $4,260 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 $66,740; dividends $25,560; utilities $17,040; interest expense $2,840; and rent expense $34,080, which includes prepayments totaling $8,520 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.g. 5,125.)