Required information Problem 14-3A Schedule of cost of goods manufactured and income statement; inventory analysis LO P2, A1 [The following information applies to the questions displayed below.] The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company. Advertising expense Depreciation expense-Office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities Inventories $27,700 Direct labor $ 670,800 Income taxes expense 9,600 288,300 10,200 Indirect labor 56,800 34,700 Miscellaneous production costs 11,400 office salaries expense Raw materials purchases Rent expense-Office space Rent expense-Selling space 136,200 7,800 44,000 73,000 970,000 28,000 28,200 Raw materials, December 31, Rent expense-Factory building 79,500 159,400 2016 Maintenance expense-Factory equipment Raw materials, December 31, 187,000 37,500 2017 Work in process, December 31, 2016 4,505,300 18,400 Sales Work in process, December 31, 2017 Sales salaries expense 21,800 397,900 Finished goods, December 31, 168,100 2016 Finished goods, December 31, 2017 139,600 2. Prepare the company's 2017 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses. LEONE COMPANY Income Statement For Year Ended December 31, 2017 Cost of goods sold Goods available for sale Cost of goods sold Operating expenses Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total operating expenses Income before taxes Net income