The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company.

Advertising expense	$	25,400		Direct labor	$	671,600
Depreciation expenseOffice equipment		8,400		Income taxes expense		286,600
Depreciation expenseSelling equipment		11,000		Indirect labor		55,100
Depreciation expenseFactory equipment		33,400		Miscellaneous production costs		9,900
Factory supervision		133,300		Office salaries expense		72,000
Factory supplies used		7,900		Raw materials purchases		952,000
Factory utilities		38,000		Rent expenseOffice space		22,000
Inventories				Rent expenseSelling space		25,100
Raw materials, December 31, 2016		164,300		Rent expenseFactory building		81,200
Raw materials, December 31, 2017		188,000		Maintenance expenseFactory equipment		35,100
Work in process, December 31, 2016		16,300		Sales		4,505,000
Work in process, December 31, 2017		21,100		Sales salaries expense		392,500
Finished goods, December 31, 2016		162,600
Finished goods, December 31, 2017		136,700

2. Prepare the companys 2017 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.

LEONE COMPANY
Income Statement
For Year Ended December 31, 2017
Cost of goods sold
Goods available for sale
Cost of goods sold
Operating expenses
Selling expenses
Total selling expenses
General and administrative expenses
Total general and administrative expenses
Total operating expenses
Income before taxes
Net income