Sheffield Corp. Income Statement For the Year Ended December 31, 2022 Revenues Net sales Other revenues Cost of goods sold Gross profit Operating expenses Selling expenses Administrative expenses Net earnings $1,122,000 As an experienced, knowledgeable accountant, you review the statement and determine that the following steps were taken by the accountant to compute the amounts presented in the income statement. 1. Net sales, as presented, consist of sales $1,202,520, less freight-out on merchandise sold $43,560, and sales returns and allowances $36,960. 2. Other revenues, as presented, consist of sales discounts $23,760 and rent revenue $5,280. 3. Selling expenses, as presented, consist of salespersons' salaries $105,600; depreciation on equipment $13,200; advertising $17,160; and sales commissions $7,920. The commissions represent commissions paid. At December 31,$3,960 of commissions have been earned by salespersons but have not been paid. All compensation should be recorded as Salaries and Wages Expense. 4. Administrative expenses, as presented, consist of office salaries $62,040; dividends $23,760; utilities $15,840; interest expense $2,640; and rent expense $31,680, which includes prepayments totaling $7,920 for the first quarter of 2018. Sheffield Corp. Income Statement For the Year Ended December 31, 2022 Revenues Net sales Other revenues Cost of goods sold Gross profit Operating expenses Selling expenses Administrative expenses Net earnings $1,122,000 As an experienced, knowledgeable accountant, you review the statement and determine that the following steps were taken by the accountant to compute the amounts presented in the income statement. 1. Net sales, as presented, consist of sales $1,202,520, less freight-out on merchandise sold $43,560, and sales returns and allowances $36,960. 2. Other revenues, as presented, consist of sales discounts $23,760 and rent revenue $5,280. 3. Selling expenses, as presented, consist of salespersons' salaries $105,600; depreciation on equipment $13,200; advertising $17,160; and sales commissions $7,920. The commissions represent commissions paid. At December 31,$3,960 of commissions have been earned by salespersons but have not been paid. All compensation should be recorded as Salaries and Wages Expense. 4. Administrative expenses, as presented, consist of office salaries $62,040; dividends $23,760; utilities $15,840; interest expense $2,640; and rent expense $31,680, which includes prepayments totaling $7,920 for the first quarter of 2018