This is basic managerial accoutning

Question 14 An inexperienced accountant prepared this condensed income statement for Cullumber Company, a retail firm that has been in business for a number of years. CULLUMBER COMPANY Income Statement For the Year Ended December 31, 2017 Revenues Net sales $1,275,000 Other revenues 33,000 1,308,000 Cost of goods sold 832,500 Gross profit 475,500 Operating expenses Selling expenses 163,500 Administrative expenses 154,500 318,000 Net earnings $157,500 As an experienced, knowledgeable accountant, you review the statement and determine the following facts. 1. Net sales consist of sales $1,366,500, less freight-out on merchandise sold $49,500, and sales returns and allowances $42,000. 2. Other revenues consist of sales discounts $27,000 and rent revenue $6,000. 3. Selling expenses consist of salespersons' salaries $120,000, depreciation on equipment $15,000, advertising $19,500, and sales commissions $9,000. The commissions represent commissions paid. At December 31, $4,500 of commissions have been earned by salespersons but have not been paid. All compensation should be recorded as Salaries and Wages Expense. 4 Administrative expenses consist of office salaries $70,500, dividends $27,000, utilities $18,000, interest expense $3,000, and rent expense $36,000, which includes prepayments totaling $9,000 for the first quarter of 2018.Prepare a correct detailed multiple-step income statement. Assume a 25% tax rate. (List other revenues before other expenses. Round answers to 0 decimal places, e.g. 5,125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) CULLUMBER COMPANY Income Statement v