Exam on the Accounting Case Akita Delicious Pizza Company (referred to as "the Company has prospered during the company's second year of operation. In order to help with decisions about whether to open another pizzeria, the Company has prepared the current income statement of the business. Mr. Yoshida, the head manager of the Marketing Department, read in an industry trade journal that a successful two-year-old pizzeria meets the following criteria: a. Gross profit percentage is at least 60%. b. Net income is at least $90,000 Mr. Yoshida believes the business meets both criteria. He intends to go ahead with the expansion plan and asks your advice on preparing the income statement in accordance with Generally Accepted Accounting Principles. You assume all amounts are correct. But some items are listed in the wrong places. Akita Delicious Pizza Company Income Statement For the year ended December 31, 2019 234.000 29.520 263,520 102 240 161,280 Sales Revenue Other service revenue Total Revenue Cost of Goods Sold Gross Profit Operating Expenses Salaries Expense Interest Expense Depreciation Expense Utilities Expense Total Operating Expense Income from Operations Other Revenue: Sales Returns Net Income 42,720 7,200 5.760 4,440 60,120 101,160 12,840 114.000 Question: Prepare a corrected multi-step income statement and make a recommendation to Yoshida about whether the Akita Delicious Pizza Company should undertake the expansion. Ignore classifying the expenses as selling or administrative Answer 1 Select (Circle) your answer: . The Company should undertake the expansion B. The Company should not undertake the expansion Explain why you select the above