Problem 4 (25 marks) The following were selected ledger accounts of Sandy Corporation at December 31, 2017: Inventory (as of Jan. 1, 2017) 968,400 Office expense 60,480 Sales revenue 7,687,800 Insurance expense 43,740 Purchases 4,879,800 Freight-out 168,840 Sales discounts 57,600 Depreciation of office equipment 91,980 Purchase discounts 45,000 Depreciation of sales equipment 63,000 Salaries and wages (sales) 513,000 Telephone and Internet expense (sales) 32,040 Salaries and wages (administrative) 615,600 Utilities expense (administrative) 55,800 Purchase returns and allowances 27,000 Interest income 2,000 Sales returns and allowances 136,800 Loss on disposal of equipment 17,000 Freigh-in 124,200 Sales commission expense 146,700 Sandys effective tax rate on all items is 30%. A physical inventory count on 12/31/2017 indicated that ending inventory was $386,000.

1. Calculate net sales for 2017

2. Calculate cost of goods sold for 2017

3. Calculate total selling expenses for 2017

4. Calculate total administration expenses for 2017

5. Prepare a condensed multi-step 2017 income statement for Sandy Corporation, showing expenses by nature.