DAPHNE provided the following information for 2020: Purchases P 5,250,000 Purchases returns and allowances 150,000 Rental Income 250,000 Distribution costs: Freight out 175,000 Salesmen's commission 650,000 Depreciation - store equipment 125,000 Merchandise Inventory, beginning 1,000,000 Merchandise Inventory, end 1,500,000 Sales 7,850,000 Sales returns and allowances 140,000 Sales discount 10,000 Administrative expenses Officers' salaries 500,000 Depreciation - office equipment 300,000 Freight in 500,000 Income tax 250,000 Loss on sale of equipment 50,000 Purchase discounts 100,000 Dividend revenue 150,000 Loss on sale of investment 50,000 Requirements: a. Prepare an income statement of the year using a functional presentation with supporting notes.