Ennio Morricone Company had the following normal account balances on selected accounts:

Sales Revenue $2,500,000

Advertising Expense 65,000

Sales Returns and Allowances 41,500

Cost of Goods Sold 1,100,000

Common stock 250,000

Dividends 150,000

Freight-Out 35,000

Income tax expense 30,000

Interest Expense 80,000

Salaries and Wages Expense 670,000

Utilities Expense 15,000

Depreciation Expense 120,000

Interest Revenue 40,000

Inventory 67,000

Retained earnings 535,000

Insurance Expense 20,000

Sales Discounts 18,500

Instructions

1. Use the above information to prepare a multiple-step income statement for the year ended December 31, 2022.