The following income statement was prepared by an office clerk hired for July. As the accounting supervisor, you recognize that it is incorrect and prepare a corrected multi-step income statement.

Demo Sales
Income Statement
For Month Ended July 31, 2017
Sales			$	563,240
Accounts receivable				37,550
Unearned sales				18,220
Net sales			$	619,010
Operating expenses:
Accumulated depreciation, equipment	$	30,550
Advertising expense		14,220
Cost of goods sold		396,200
Depreciation expense, equipment		3,220
Insurance expense		2,610
Interest expense		1,920
Interest payable		305
Jen Conway, withdrawals		14,110
Office supplies		10,100
Prepaid insurance		16,200
Prepaid rent		25,550
Rent expense		5,660
Salaries payable		175,200
Sales discounts		3,020		698,865
Loss			$	79,855

My Answer

DEMO SALES
Income Statement
For Month Ended July 31, 2017
Net sales		$619,010
Cost of goods sold		396,200
Gross profit		$222,810
Operating expenses:
Advertising expense	$14,220
Insurance expense	2,610
Rent expense	5,660
Depreciation expense, equipment	3,220
Total operating expenses		25,710
Profit from operations		197,100
Other revenues and expenses:
Interest expense		1,920
Profit		199,020

was this done correctly ?