On June 30, 2016, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Cash $ 125,000 Accounts Receivable 340,000 Merchandise Inventory, July 1, 2015 415,000 Office Supplies 9,000 Prepaid Insurance 18,000 Land 300,000 Store Equipment 550,000 Accumulated Depreciation-Store Equipment 190,000 Office Equipment 250,000 Accumulated Depreciation-Office Equipment 110,000 Accounts Payable 85,000 Salaries Payable 9,000 Unearned Rent 6,000 Notes Payable 50,000 Common Stock 300,000 Retained Earnings 525,000 Dividends 275,000 Sales 6,590,000 Purchases 4,100,000 Purchases Returns and Allowances 32,000 Purchases Discounts 13,000 Freight In 45,000 Sales Salaries Expense 580,000 Advertising Expense 315,000 Delivery Expense 18,000 Depreciation Expense-Store Equipment 12,000 Miscellaneous Selling Expense 28,000 Office Salaries Expense 375,000 Rent Expense 43,000 Insurance Expense 17,000 Office Supplies Expense 5,000 Depreciation Expense-Office Equipment 4,000 Miscellaneous Administrative Expense 16,000 Rent Revenue 32,500 Interest Expense 2,500 Required: 1. Does Simkins Company use a periodic inventory system or perpetual inventory system? Which account listed would not be used under both inventory systems? 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2016. Be sure to complete the statement heading. The merchandise inventory as of June 30, 2016, was $508,000. Refer to the Chart of Accounts and the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Less, Add or colons (:) will automatically appear if required. In the Other income and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign. 3. Prepare the closing entries for Simkins Company as of June 30, 2016. Refer to the Chart of Accounts for exact wording of account titles. 4. What would be the net income if the perpetual inventory system had been used?