Managerial Accounting Problem. Answer format sheet provided. Thanks!

Douglas Werther is the principal owner of Green Pen Company. His 19 year old daughter, Jessica, is a first year accounting student. She to Financial Accounting, but not Managerial Accounting. Douglas would like to give his daughter practical experience. He allows her to prepar the company's Income Statement and have her show it to you, the company's controller. Below is the statement Jessica prepared: (Assume all account balances are accurate) 1,400,000 Green Pen Company Income Statement Year Ended December 31, 2018 Sales Expenses: Raw Materials 53,000 Rent Expense, Factory 14,000 Rent Expense, Office Bldg 10,000 Insurance Expense, Factory 6,000 Insurance Expense, Office Bldg 3,000 Indirect Labor 25,000 Depreciation Expense, Office Bldg 12,000 Depreciation Expense, Factory 13,000 Direct Labor 50,000 Cost of Goods Sold 770,000 Factory Maintenance 22,000 Advertising Expense 100,000 Selling and Admin Salary Expense 124.000 Misc Selling and Admin Expenses 31,000 Total Expenses Net Income 1,233,000 167,000 After looking over Jessica's statement, you tell Doug that she is not ready to do such work and she needs to complete school first. You inform him you will correct the statement and explain to Jessica what errors she made. Required: Prepare the correct Income statement using the form provided Explain to Jessica what mistakes she made Green Pen Company Income Statement Year Ended December 31, 2018 Sales Cost of Goods Sold Gross Margin Operating Expenses: Total Operating Expenses Net Income Gross Margin %===================== What mistakes did Jessica make