Question 1 Not yet answered Below is a list of accounts and balances for Sandals Inc. for the year ending August 31, 2020. All balances are in thousands of dollars. Sandals Inc. follows APSE. Assume a tax rate of 15%. Marked out of 28.00 P Flag question Account Title Balance Accounts Payable $20,700 Accounts Receivable $23,500 Accumulated Depreciation $8,400 Advertising Expense $16,500 Cash $19,900 Common Shares $1,200 Cost of Goods Sold $41,000 Depreciation Expense-Office Equipment $4,000 Depreciation Expense-Retail Equipment $4,900 Equipment $50,800 Gain on Sale of Assets $2,800 Gain on Sale of Discontinued Operations $14,000 Income Tax Benefit $6,585 Interest Expense $5,300 Interest Payable $3,200 Loss from Operating Discontinued Operations $29,300 Merchandise Inventory $25,400 Notes Payable $47,000 Equipment $50,800 Gain on Sale of Assets $2,800 Gain on Sale of Discontinued Operations $14,000 Income Tax Benefit $6,585 Interest Expense $5,300 Interest Payable $3,200 Loss from Operating Discontinued Operations $29,300 Merchandise Inventory $25,400 Notes Payable $47,000 Office Salaries Expense $11,000 Preferred Shares $5,100 Prepaid Insurance $8,800 Rent Expense-Office $10,500 Rent Expense-Retail $19,200 Retained Earnings $48,515 Salaries Payable $9,400 Sales Discounts $11,100 Sales Salaries Expense $20,100 Sales Returns and Allowances $3,500 Sales Revenue $115,700 Unearned Revenue $22,200 Prepare an income statement by function for the year ended August 31, 2020. Sandals Inc. Income Statement For the Year Ended August 31, 2020 Sales Revenue Less : Sales Returns and Allowances Less Sales Discounts Net Sales Cost of Goods Sold Gross Profit Operating Expenses Selling Expenses Depreciation Expense-Retail Equipment Advertising Expense Rent Expense-Retail Advertising Expense Rent Expense-Retail Sales Salaries Expense Total Selling Expenses Administrative Expenses Depreciation Expense-Office Equipment Rent Expense-Office Office Salaries Expense Total Administrative Expenses Total Operating Expenses *Income (Loss) from Operations Other Income and Expenses Gain on Sales of Assets Other Income and Expenses Gain on Sales of Assets *Interest Expense *Income (Loss) from before Income Tax Benefit (Expense) Income Tax Benefit (Expense) *Income (Loss) from Continuing Operations Discontinued Operations Gain on Sales of Discontinued Operations (net of tax) *Loss from Operating Discontinued Operations (net of tax) *Net Income (Loss)