A.R is a merchandising company in the Jeddah city. Following data is available for the year 2012 operations.

Total sales of the year 2018 are SR 1,000,000. The sales returns and sale discounts are SR 40,000 and SR 30,000. The costs of goods sold for the company is 30 % of the total sales.

The operating expenses for the company are as follows

Salaries expense SR 100,000

Advertising expense 2% cost of goods sold.

Utilities expense SR 15,000

Depreciation expense: the fixed assets is 100,000, the useful life is 10 years. No salvage value.

Shipment expense 15% of the cost of goods sold.

Other revenues and gains for the for the company are

Interest revenue is SR 8,000

Gain on sale of assets SR 5,000

Other expenses and loss are

Loss on sale of assets is SR 6,000

Interest expense SR 1,500

Required: prepare the multistep income statement.