$ Sales discounts Office salaries expense Rent expense-Office space Advertising expense Sales returns and allowances Office supplies expense Cost of goods sold Sales Insurance expense Sales staff salaries 860 3,100 2,600 720 360 720 11,200 42,000 2,100 3,600 Required: Prepare a multiple-step income statement for the year ended December 31. $ 42,000 Save-the-Earth Co. Income Statement For Year Ended December 31 Sales Less: Sales returns and allowances Less: Sales discounts Net sales Cost of goods sold Gross profit Expenses Selling expenses 360 860 1,220 40,780 11.200 29,580 3,600 720 4,320 Sales staff salaries Advertising expense Total selling expenses General and administrative expenses Office supplies expense Insurance expense Office salaries expense 720 2,100 3,100 Total general and administrative expenses Total expenses Net income 5,920 10,240 19,340