P5-5B A part-time bookkeeper prepared this income statement for Kritek Company for the year ending December 31, 2012. KRITEK COMPANY Income Statement December 31, 2012 Revenues Sales revenue $720,000 Less: Freight-out $14,000 Sales discounts 11,300 25,300 Net sales 694,700 Other revenues (net) 1,300 Total revenues 696,000 Expenses Cost of goods sold 460,000 Selling expenses 103,000 Administrative expenses 54,000 Dividends 12,000 Total expenses 629,000 Net income $ 67,000 As an experienced, knowledgeable accountant, you review the statement and determine the following facts. 1. Sales include $12,000 of deposits from customers for future sales orders. 2. Other revenues contain two items: interest expense $4,000 and interest revenue $5,300. 3. Selling expenses consist of sales salaries and wages $82,500, advertising $13,000, and depreciation on store equipment $7,500. 4. Administrative expenses consist of office salaries $23,000; utilities expense $9,500; rent expense $14,500; and insurance expense $7,000. Insurance expense includes $1,200 of insurance applicable to 2013. Instructions Prepare a correct detailed multiple-step income statement. Assume a tax rate of 25%