Inventories January 1 December 31 Materials $398,960 $502,690 718,130 683,660 Work in process Finished goods 690,200 698,740 Advertising expense $341,330 48,260 Depreciation expense-office equipment Depreciation expense-factory equipment 64,850 Direct labor 774,140 Heat, light, and power-factory 25,640 Indirect labor 90,480 Materials purchased 759,060 264,920 Office salaries expense 21,110 Property taxes-factory Property taxes-headquarters building Rent expense-factory 43,730 35,690 Sales 3,554,020 Sales salaries expense 436,330 17,590 Supplies-factory Miscellaneous costs-factory 11,060 Required: 2. Prepare the income statement. Shanika Company Income Statement For the Year Ended December 31, 2046 Cost of goods sold: Operating expenses Administrative expenses: Selling expenses: Total operating expenses