The following multiple-step, income statement was prepared for Carlsbad Company contains errors:

CARLSBAD COMPANY
Income Statement
For the Year Ended February 28, 20Y8
Sales				7,385,000
Cost of goods sold				(4,637,500)
Operating income				$2,747,500
Expenses:
Selling expenses		$ 1,400,000
Administrative expenses		1,050,000
Delivery expense		87,500
Total expenses				(2,537,500)
Other expense:				210,000
Interest revenue				70,000
Gross profit				$140,000

Prepare a corrected income statement for Carlsbad Company for the year ended February 28, 20Y8.

Carlsbad Company
Income Statement
For the Year Ended February 28, 20Y8
Sales
Cost of goods sold
Gross profit
Expenses:
Selling expenses
Administrative expenses
Delivery expense
Total expenses
Operating income
?
Interest revenue
Net income