The Income Statement and Balance Sheet columns below are from the work sheet of the Mandle Company for the year ended December 31, 20- Mandle Company Work Sheet (partial) For the year ended December 31, 20 Income Statement Account Title Debit Credit Cash Balance Sheet Debit Credit 24,000 12,500 8,000 550 1,200 750 33,000 19,000 Accounts Receivable Merchandise Inventory Store Supplies Office Supplies Prepaid Insurance Store Equipment Accumulated Depreciation-Store Equipment Office Equipment Accumulated Depreciation --Office Equipment Accounts Payable Salaries Payable Long-Term Notes Payable H. Mandle, Capital H. Mandle, Drawing Income Summary 9,000 5,000 9,900 200 18,000 45,300 16,000 8500 8,000 Sales 31,000 Sales Returns and Allowances 250 Purchases 13,500 Purchases Returns and Allowances 350 Purchases Discounts 200 Sales Salary Expense (selling) 4,600 Office Salary Expense (general) 3,500 Store Supplies Expense (selling) 150 Office Supplies Expense (general) 200 Insurance Expense (general) 400 Depreciation Expense-Store Equipment (selling) 400 Depreciation Expense-Office Equipment (general) 450 31,950 39,550 105,000 97,400 Net Income 7,600 7,600 39,550 39,550 105,000 105,000 Required: Prepare a multi-step income statement for Mandle Company for the current fiscal year. Include separate sections for selling expenses and general expenses under the heading "Operating Expenses" by using the classifications provided in the Account Title column of the work sheet. Mandle Company Income Statement For the year ended December 31, 20- Mandle Company Income Statement For the year ended December 31, 20 Revenue: Sales Less Sales returns and allowances 31,000 Net sales 250 31.250 Cost of goods sold: Merchandise inventory, January 1, 20- Purchases 3,000 13.500 350 200 550 12,950 20,950 Less Purchases returns and allowances Less Purchases discounts Net purchases Goods available for sale Less merchandise inventory, December 31, 20- Cost of goods sold Gross profit Operating expenses Selling expenses: Sales salary expense Store supplies expense II Operating expenses: Selling expenses: Sales salary expense Store supplies expense Depreciation expense store equipment 0 Total selling expenses General expenses: Office salary expense Office supplies expense Insurance expense bi ni Depreciation expense office equipment Total general expenses Total operating expenses Net income