Problem 5-5A An inexperienced accountant prepared this condensed income statement for Carla Vista Co., a retail firm that has been in business for a number of years. CARLA VISTA CO. Income Statement For the Year Ended December 31, 2017 Revenues Net sales $1,190,000 Other revenues 30,800 1,220,800 Cost of goods sold 777,000 Gross profit 443,800 Operating expenses Selling expenses 152,600 Administrative expenses 144,200 296,800 Net earnings $147,000 As an experienced, knowledgeable accountant, you review the statement and determine the following facts. 1. 2. 3. Net sales consist of sales $1,275,400, less freight-out on merchandise sold $46,200, and sales returns and allowances $39,200. Other revenues consist of sales discounts $25,200 and rent revenue $5,600. Selling expenses consist of salespersons' salaries $112,000; depreciation on equipment $14,000; advertising $18,200; and sales commissions $8,400. The commissions represent commissions paid. At December 31, $4,200 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 $65,800; dividends $25,200; utilities $16,800; interest expense $2,800; and rent expense $33,600, which includes prepayments totaling $8,400 for the first quarter of 2018. 4. Prepare a correct detailed multiple-step income statement. Assume a 25% tax rate. (List other revenues before other expenses. Round answers to 0 decimal places, e.g. 5,125.) CARLA VISTA CO. Income Statement $ $