Prepare a correct detailed multi-step income statement assuming a 25% tax rate.

2 III SHERIDAN COMPANY Income Statement For the Year Ended December 31, 2017 Revenues Net sales $1,156,000 Other revenues 29.920 1,185,920 Cost of goods sold 754,800 Gross profit 431,120 Operating expenses Selling expenses 148.240 Administrative expenses 140.080 288,320 Net earnings $142.800 As an experienced, knowledgeable accountant, you review the statement and determine the following facts. 1 2. 3. Net sales consist of sales $1,238,960, less freight-out on merchandise sold $44.880, and sales returns and allowances $38,080 Other revenues consist of sales discounts $24.480 and rent revenue $5,440. Selling expenses consist of salespersons'salaries $108,800; depreciation on equipment $13,600, advertising 517,680, and sales commissions $8,160. The commissions represent commissions paid. At December 31, $4,080 of commissions have been earned by salespersons but have not been paid. All compensation should be recorded as Salaries and Wages Expense Administrative expenses consist of office salaries $63,920; dividends $24.480. utilities $16,320; interest expense $2.720, and rent expense $32.640, which includes prepayments totaling $8.160 for the first quarter of 2018, 4