Exercise 7 (6 Points) O'Malley Corporation was incorporated and began business on January 1, 2015. It has been successful and now requires a bank loan for additional working capital to finance expansion. The bank has requested an audited income statement for the year 2015. The accountant for O'Malley N 2 Corporation provides you with the following income statement, which O'Malley plans to submit to the bank. O'MALLEY CORPORATION INCOME STATEMENT Sales revenue Dividends Gain on recovery of insurance proceeds from earthquake loss 850,000 32,300 38,500 920,800 Less: Selling expenses Cost of goods sold Interest expense Loss on obsolescence of inventories Loss on discontinued operations Administrative expenses Income before income tax Income tax Net income 101,100 510,000 13,700 34,000 48,600 73,400 780,800 140,000 56,000 84,000 Instructions Indicate the deficiencies in the income statement presented