Problem 5-5A An inexperienced accountant prepared this condensed income statement for Sheridan Company, a retail firm that has been in business for a number of years. SHERIDAN COMPANY Income Statement For the Year Ended December 31, 2017 Revenues Net sales $969,000 Other revenues 25,080 994,080 Cost of goods sold 632,700 Gross profit 361,380 Operating expenses Selling expenses 124,260 Administrative expenses 117,420 241,680 Net earnings $119,700 As an experienced, knowledgeable accountant, you review the statement and determine the following facts. 1. 2. 3. Net sales consist of sales $1,038,540, less freight-out on merchandise sold $37,620, and sales returns and allowances $31,920. Other revenues consist of sales discounts $20,520 and rent revenue $4,560. Selling expenses consist of salespersons' salaries $91,200; depreciation on equipment $11,400; advertising $14,820; and sales commissions $6,840. The commissions represent commissions paid. At December 31, $3,420 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 $53,580; dividends $20,520; utilities $13,680; interest expense $2,280; and rent expense $27,360, which includes prepayments totaling $6,840 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.)