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 ncome Statement For the Year Ended December 31, 2017 enues et sales $850,000 22,000 872,000 555,000 317,000 er revenues Cost of goods sold Gross profit expenses 109,000 103,000 212.000 $105,000 Selling expenses Administrative expenses Net earnings As an experienced, knowledgeable accountant, you review the statement and determine the . following facts: 1. Net sales consist of: sales $911,000, less 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 $80,000, 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 eaned by salespersons but have not been paid. All compensation should be recorded as Salaries and Wages Expense. 4. Administrative expenses consist of office salaries $47,000, dividends $18,000, utilities $12,000, interest expense $2,000, 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. Show your work on the Excef spreadsheet and submit with your explanation. Click the Assignment Files tab to submit your assignment