As an experienced, knowledgeable accountant, you review the statement and determine the following facts.

1. Net sales consist of sales $1,202,520, less freight-out on merchandise sold $43,560, and sales returns and allowances $36,960.

2. Other revenues consist of sales discounts $23,760 and rent revenue $5,280.

3. Selling expenses consist of salespersons salaries $105,600; depreciation on equipment $13,200; advertising $17,160; and sales commissions $7,920. The commissions represent commissions paid. At December 31, $3,960 of commissions have been earned by salespersons but have not been paid. All compensation should be recorded as Salaries and Wages Expense.

4. Administrative expenses consist of office salaries $62,040; dividends $23,760; utilities $15,840; interest expense $2,640; and rent expense $31,680, which includes prepayments totaling $7,920 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 answers to 0 decimal places, e.g. 5,125.)

Problem 5-SA An inexpenenced accountant prepared this condensed income statement for Oriele Company, a retail them that has been in business for a number of years. ORIOLE COMPANY Income Statement For the Year Ended December 31, 2017 Revenues Net sales 31.122.000 Other revenues 29,640 1,151,640 Cost of goods sold 732,600 Gross profit 418,440 Operating expenses Selling expenses 143,880 Administrative expenses 135,960 279,840 Net earnings $138,600 As an experienced, kronledgeable accountant, you review the statement and determine the following facts. Net sales consist of sales $1.202,520, less freight-out on merchandise sold 543.560, and sales returns and allowances $36.950. 2 Other revenues consist of sales discounts $23,760 and rent revenue 55,280. 3. Selling expenses consist of salespersons salaries $105,500 depreciation on equipment 513,700: advertising $17,160 and sales commissions $7.920. The commissions represent commissions paid. At December 31, $3,960 of commissions have been earned by salespersons but have not been paid. All compensation should be recorded as Salones and Wages Expense 4. Administrative expenses consist of office salaries $62,040, dividends $23.760, tites $15,840; interest expense $2,640; and rent expense 39,680, which includes prepayments totaling 7,920 for the first Quarter of 2018 Prepare a correct detailed multiple-step income statement. Assume a 25 tax rate. (ust other revenues before other expenses. Round answers to decimal places, eg. 5,125.) ORIOLE COMPANY Income Statement For the Year Ended December 31, 2017 Sales