The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. Nelson Company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation Expense-Store Equipment, Sales Salaries Expense, Rent Expense-Selling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative. NELSON COMPANY Unadjusted Trial Balance January 31 Cash Merchandise inventory Debit $ 18,400 14,500 Credit Store supplies 5,900 Prepaid insurance 2,500 Store equipment 42,800 Accumulated depreciation-Store equipment $ 18,150 Accounts payable 17,000 Common stock 4,000 Retained earnings. 31,000 Dividends 2,100 Sales 114,950 Sales discounts 1,800 Sales returns and allowances 2,200 Cost of goods sold 38,000 Depreciation expense-Store equipment 0 Sales salaries expense 15,100 Office salaries expense 15,100 Insurance expense 0 Rent expense-Selling space 8,500 Rent expense-Office space Store supplies expense Advertising expense Totals 8,500 0 9,700 $ 185,100 $ 185,100 Additional Information: a. Store supplies still available at fiscal year-end amount to $2,350. b. Expired insurance, an administrative expense, is $1,600 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,625 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,300 of inventory is still available at fiscal year-end. Required 1 Required 2 Required 3 Prepare a multiple-step income statement for the year ended January 31 that begins with gross sales and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. NELSON COMPANY Income Statement Sales Less: Sales discounts For Year Ended January 31 Less: Sales returns and allowances Expenses Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses 0 0 0 0 0 0 Required