The Boston Trading Company, whose accounting year ends December 31, had the following normal balances in its general ledger at December 31:

c. Debt-to-total-assets ratio 2. Comment on changes to Nafooz Company's profitability, liquidity, and solvency 1OA. Multi-step Income Statement and Adjusting Entries The Boston Trading Company counting year ends on December 31, had the following normal balances in its ge - LO2 neral ledger at De- cember 31: Cash Accounts receivable Inventory Prepaid insurance Office supplies Furniture and fixtures . . Accumulated depreciation- $15,000 Sales revenue. $610,000 394,000 4,800 77,000 10,800 5,600 9,400 56,000 9,000 ..56,600 Cost of goods sold.. 74,000 Utilities expense ales salaries expense 4,200 Delivery expense 21,000 Advertising expense. Rent expense furniture and fixtures Delivery equipment. Accumulated depreciation-- 7,000 Office salaries expense . .. 86,000 Income tax expense delivery equipment Accounts payable Long-term notes payable Common stock. Retained earnings ..12,000 43,000 28,000 70,000 56,400 During the year, the accounting department prepared monthly statements but no adjusting entries were made in the journals and ledgers. Data for the year-end procedures are as follows: 1. Prepaid insurance, December 31, was $1,500 2. Depreciation expense on furniture and fixtures for the year was $2,000 3. Depreciation expense on delivery equipment for the year was $11,000 4. Salaries payable, December 31, ($1,800 sales and $1,200 office) was $3,000 5. Unused office supplies on December 31 were $1,200 Required a. Record the necessary adjusting entries at December 31. b. Prepare a multi-step income statement for the year. Combine all the operating expenses into one line on the income statement for selling, general and administrative expenses