Scenario: An inexperienced accountant prepared this condensed income statement for Simon Company, a retail firm that has been in business for a number of years. SIMON COMPANY Income Statement For the Year Ended December 31, 2017 Revenues Net sales $850,000 872,000 Cost of goods sold Gross profit 317,000 Operating expenses Selling expenses 109,000 istrative expenses Net earnings $105,000 As an experienced, knowledgeable accountant, you review the statement and determine the following facts: 1. Net sales consist of sales $911,000, loss freight-out on merchandise sold $33,000, and sales returns and allowances $28,000. 2. Other revenues consist of sales discounts $18,000 and rent revenue $4,000. 3, Selling expenses consist of salespersons salaries S80.000, depreciation on equipment $10,000, advertising $13,000, and sales commissions $6,000. The commissions represent commissions paid. At December 21, $3,000 of commissions have been earned by salespersons but have not been paid. Al compensation should be recorded as Salaries and Wages Expenses 4. Administrative expenses consist of office salaries $17,000, dividend $18,000, utilities $12,000, interest expense S2,000, and rent expense $24,000, which includes prepayments totaling $6.000 for the first quarter of 2018. Prepare a detailed multi-step income statement with a brief explanation of 700 words, Assume a 25% tax rate