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The following selected accounts and their adjusted balances appear in the ledger of Fernandez Co. at the end of its fiscal year:

Line Item Description	Amount
Cash	$250,000
Accounts Receivable	1,197,000
Inventory	1,790,000
Estimated Returns Inventory	23,500
Office Supplies	14,000
Prepaid Insurance	8,500
Office Equipment	870,000
Accumulated Depreciation-Office Equipment	580,000
Store Equipment	2,600,000
Accumulated Depreciation-Store Equipment	820,000
Accounts Payable	336,000
Customer Refunds Payable	39,000
Salaries Payable	43,000
Notes Payable (long-term)	200,000
Common Stock	600,000
Retained Earnings	2,850,000
Dividends	50,000
Sales	9,350,000
Cost of Goods Sold	5,840,000
Sales Salaries Expense	820,000
Advertising Expense	350,000
Depreciation Expense-Store Equipment	120,000
Miscellaneous Selling Expense	58,000
Office Salaries Expense	550,000
Rent Expense	104,000
Depreciation Expense-Office Equipment	60,000
Insurance Expense	50,000
Office Supplies Expense	26,000
Miscellaneous Administrative Expense	12,000
Interest Expense	25,000

Prepare a multiple-step income statement for Fernandez Co. for the year ended December 31.

Line Item Description	Amount	Amount	Amount
Advertising expenseNet incomeRent expenseSales salaries expenseSales			$- Select -
Advertising expenseCost of goods soldNet incomeRent expenseSales salaries expense			- Select -
Advertising expenseCost of goods soldGross profitNet incomeSales salaries expense			$- Select -
Operating expenses:
Selling expenses:
Cost of goods soldOffice salaries expenseOffice suppliesSales discountsSales salaries expense	$- Select -
Accounts payableAdvertising expenseCashPrepaid insuranceSales returns and allowances	- Select -
Accounts receivableAccumulated depreciationCommon stockDepreciation expense-store equipmentStore equipment	- Select -
CashNotes payableOffice supplies expensePrepaid insuranceSales discounts	- Select -	blank	blank
CashMiscellaneous selling expenseOffice equipmentSales discountsSales	- Select -
Total selling expenses		$Total selling expenses
Administrative expenses:
Common stockInventoryOffice salaries expenseOffice suppliesSales	$- Select -
Accounts payableAccounts receivableNotes payableRent expenseSales returns and allowances	- Select -
Accumulated depreciationCashDepreciation expense-office equipmentOffice equipmentOffice supplies	- Select -
CashInsurance expenseNotes payablePrepaid insuranceSales discounts	- Select -
Accounts receivableCost of goods soldMiscellaneous administrative expenseNotes payableSales	- Select -
Total administrative expenses		Total administrative expenses
Total operating expenses			Total operating expenses
Gross profitOperating incomeLoss from operationsNet incomeNet loss			$- Select -
Other revenue and expense:
Advertising expenseInsurance expenseInterest expenseOffice salaries expenseRent expense			- Select -
Gross profitOperating incomeLoss from operationsNet incomeNet loss			$- Select -