Sims Company began operations on January 1. Its cost and sales information for this year follow. 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. Prepare an income statement for the year using variable costing. Required 1 Required 2 \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ SIMS COMPANY } \\ \hline \multicolumn{2}{|c|}{ Income Statement (Absorption Costing) } \\ \hline Sales & $25,200,000 \\ \hline Cost of goods sold & 13,300,000 \\ \hline Gross profit & 11,900,000 \\ \hline Selling and administrative expenses & 5,520,000 \\ \hline Income & $6,380,000 \\ \hline \end{tabular} Required 1 Required