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Question 4 of 5 > - /20 View Policies Current Attempt in Progress An inexperienced accountant prepared this condensed income statement for Whispering Winds Corp.

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Question 4 of 5 > - /20 View Policies Current Attempt in Progress An inexperienced accountant prepared this condensed income statement for Whispering Winds Corp. a retail firm that has been in business for a number of years. Whispering Winds Corp Income Statement For the Year Ended December 31, 2022 Revenues Net sales $1.020,000 Other revenues 26,400 1,046,400 Cost of goods sold 666,000 Gross profit 380,400 Operating expenses Selling expenses 130,800 Administrative expenses 123,600 254 400 Net earnings $126,000 As an experienced, knowledgeable accountant, you review the statement and determine that the following steps were taken by the accountant to compute the amounts presented in the income statement 1 Net sales, as presented, consist of sales $1,093,200, less freight-out on merchandise sold $39,600, and sales returns and allowances $33,600. 2. Other revenues, as presented, consist of sales discounts $21,600 and rent revenue $4,800, 3. Selling expenses, as presented, consist of salespersons' salaries $96,000; depreciation on equipment $12,000; advertising $15,600; and sales commissions $7,200. The commissions represent commissions paid, At December 31, $3,600 of commissions have been earned by salespersons but have not been paid. All compensation should be recorded as Salaries and Wages Expense. 4 Administrative expenses, as presented, consist of office salaries $56,400, dividends $21,600; utilities $14,400; interest expense $2,400; and rent expense $28,800, which includes prepayments totaling $7,200 for the first quarter of 2018, Prepare a correct detailed multiple-step income statement. Assume a 25% tax rate (List other revenues before other expenses. Round answers to decimal places, c.8. 5,125.) Prepare a correct detailed multiple-step income statement. Assume a 25% tax rate. (List other revenues before other expenses. Round answers to decimal places, c.8.5,125.) Whispering Winds Corp. Income Statement For the Year Ended December 31, 2022 Sales Sales Revenue $ Less : Sales Discounts Sales Returns and Allowances Net Sales Net Sales c Question 4 of 5 - /20 $

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