[The following information applies to the questions displayed below.]

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

Advertising expense	$	30,600		Direct labor	$	677,100
Depreciation expenseOffice equipment		9,800		Income taxes expense		259,700
Depreciation expenseSelling equipment		9,900		Indirect labor		59,800
Depreciation expenseFactory equipment		36,500		Miscellaneous production costs		11,400
Factory supervision		105,700		Office salaries expense		63,000
Factory supplies used		9,100		Raw materials purchases		943,000
Factory utilities		44,000		Rent expenseOffice space		22,000
Inventories				Rent expenseSelling space		28,300
Raw materials, December 31, 2016		151,100		Rent expenseFactory building		76,700
Raw materials, December 31, 2017		188,000		Maintenance expenseFactory equipment		35,300
Work in process, December 31, 2016		17,500		Sales		4,546,900
Work in process, December 31, 2017		19,400		Sales salaries expense		394,400
Finished goods, December 31, 2016		167,300
Finished goods, December 31, 2017		136,100

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