ting 1 Fall 2023 9. (Identification of Income Statement Weaknesses) The following financial statement was prepared by employees of Walters Corporation. Revenues Walters Corporation Income Statement Year Ended December 31, 2025 Gross sales, including sales taxes Less: Returns, allowances, and cash discounts $1,044,300 Net sales 56,200 Dividends, interest, and purchase discounts 988,100 Total revenues Recoveries of accounts written off in prior years 30,250 13,850 1,032,200 Costs and expenses Cost of goods sold, including sales taxes 465,900 Salaries and related payroll expenses Rent Delivery expense and freight-in Bad debt expense Total costs and expenses 60,500 19,100 3,400 27,800 576,700 Income before other items 455,500 Other items Loss on discontinued styles (Note 1) 71,500 Loss on sale of marketable securities (Note 2) 39,050 Loss on sale of warehouse (Note 3) 86,350 196,900 Total other items $258,600 Net income $2.30 Net income per share of common stock Note 1: New styles and rapidly changing consumer preferences resulted in a $71,500 loss on the disposal of discontinued styles and related accessories. Note 2: The corporation sold an investment in marketable securities at a loss of $39,050. The corporation normally sells securities of this nature. Note 3: The corporation sold one of its warehouses at an $86,350 loss. Identify and discuss the weaknesses in classification and disclosure in the single-step income statement above. You should explain why these treatments are weaknesses and what the proper presentation of the items would be in accordance with GAAP..