Teddy Bear Trading is operating a big store of stuff toys called Crush Magic. For the month of April 20X9, recorded sales in the ledger amounted to P8,756,445. Contra-sales account balances include P223,650 returns and allowances and P396,500 discounts. The entity began April with P2,963,574 of inventory which decreased by P75,924 at the end of the month. Purchases made amounted to P3,685,790 which were transported to the company premises costing P352,000 in total. Contra-purchases account balances include P235,112 returns and allowances and P265,820 discounts. The company is also into costume rentals of different cartoon characters, rental income of which amounted to P125,746 for the month. To operate, the company needs to pay salaries of P435,874, utilities of P236,987, and rent of P52,365. Depreciation of furniture, equipment, and POS system totaled P39,657. Required: a. Prepare a multi-step merchandising company income statement.