Multiple-Step Income Statement and Profit Margin The following income statement items, arranged in alphabetical order, are taken from the records of Shaw Corporation for the current year: Advertising expense Interest expense $1,436 $1,426 Commissions expense Interest revenue 2,555 1,410 Rent revenue 6,934 Cost of goods sold 29,235 3,059 Depreciation expense office building Salaries and wages expense-office 11,701 Income tax expense 1,544 Sales revenue 48,142 Insurance expense salesperson's auto 2,182 Supplies expense-office 865 Required: Assume that Shaw Corporation classifies all operating expenses into two categories: (1) selling and (2) general and administrative 1. Prepare a multiple-step income statement for the current year. Shaw Corporation Income Statement For the Current Year Sales revenue $ 48,142 Cost of goods sold 29,235 Gross profit 18,907 Operating expenses Selling expenses: Advertising expense 1,436 Commissions expense 2,555 Insurance expense - salesperson's auto 2,182 6,173 Total selling expenses Total selling expen ses 6,173 General and administrative expenses: Depreciation expense - office building 3,059 Salaries and wages expense - office 11,701 Supplies expense - office 865 15,625 Total general and administrative expenses 21,798 Total operating expenses Loss from operations 2,891 Other revenues and expenses: Interest expense 1,426 Interest revenue 1,410 Rent revenue 6,934 9,770X Excess of other revenues over other expenses Income before taxes 6,879X $ Income tax expense 1,544 Net income 5,355