Multiple-Step Income Statement

Use the following information to prepare a multiple-step income statement, including the revenue section and the cost of goods sold section, for Sauter Office Supplies for the year ended December 31, 20--.

Sales	$156,876
Sales Returns and Allowances	2,344
Sales Discounts	4,155
Interest Revenue	419
Merchandise Inventory, January 1, 20--	27,769
Purchases	112,094
Purchases Returns and Allowances	5,517
Purchases Discounts	2,710
Freight-In	870
Merchandise Inventory, December 31, 20--	33,028
Wages Expense	27,611
Supplies Expense	744
Phone Expense	888
Utilities Expense	7,988
Insurance Expense	1,294
Depreciation ExpenseEquipment	3,809
Miscellaneous Expense	584
Interest Expense	4,692 Sauter Office SuppliesIncome StatementFor Year Ended December 31, 20--Revenue from sales:Sales $Less sales returns and allowances $Less sales discounts Net sales $Cost of goods sold:Merchandise inventory, January 1, 20-- $Purchases $Less purchases returns and allowances $Less purchases discounts Gross profit $Add freight-in $ $Operating expenses: $ Total operating expenses $Other revenues: $Other expenses: $