Required information [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 Raw materials, December 31, 2016 Raw materials, December 31, 2017 Work in process, December 31, 2016 Work in process, December 31, 2017 Finished goods, December 31, 2016 Finished goods, December 31, 2017 $ 28,500 Direct labor 9, 100 Income taxes expense 9,700 Indirect labor 30,200 Miscellaneous production costs 131,200 Office salaries expense 9,000 Raw materials purchases 42,000 Rent expense-office space Rent expense-Selling space 164,500 Rent expense-Factory building 183,000 Maintenance expense-Factory equipment 15,400 Sales 22,100 Sales salaries expense 165,400 139,000 $ 673,600 264,100 57,500 11,800 63,000 999,000 23,000 27,600 76,900 35, 100 4,456,700 398,700 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