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. 689,200 258,000 Advertising expense Depreciation expense- Office equipment Depreciation expense- Selling equipment Depreciation expense- Factory equipment Factory supervision Factory supplies used $27,200 Direct labor 8,500 Income taxes expense 10,100 Indirect labor 32,700 59,00 Miscellaneous production costs 9,400 131,100 office salaries expse 64,000 987,000 28,00 27,300 77,70 36,000 8,000 Raw materials purchases 45,000 Rent expense-office Factory utilities space Rent expense-Selling space Rent expense-Factory building Maintenance expense- Factory equipment 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 160,800 178,000 16,000 Sales 4,435,40 23,600 Sales salaries expense 396,700 166,600 137,500 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 0 0 Operating expenses Selling expenses Total selling expenses 0 General and administrative expenses otal general and administrative expenses Total operating expenses 0 Income before taxes Net income Cost of Goods Sold Finished Goods, December 31,2014 Add: Cost of Goods Manufactured Goods Available for sale Less: Finished Goods , December 31,2015 Cost of Goods Sold Sales Less: Cost of Goods Sold Gross Profit (A) Operating expenses: Selling Expenses Advertising expense Deprection expenses-selling equipment Rent expense- selling space Sales salaries expenses Total Selling expenses General and administrative expenses Deprection expenses-Office equipment Office salaries expense Rent expense- office space Toatl general and administrative expenses Total Operating expenses (B) Income before Tax(A-B) Less: income Tax Net Income