Whispering Winds Corp.

Income Statement

For the Year Ended December $31,2022$

As an experienced, knowledgeable accountant, you review the statement and determine that the following steps were taken by the

accountant to compute the amounts presented in the income statement.

Net sales, as presented, consist of sales $$1,093,200,$ less freight$-$out on merchandise sold $$39,600,$ and sales returns and

allowances $$33,600.$

Other revenues, as presented, consist of sales discounts $$21,600$ and rent revenue $$4,800.$

Selling expenses, as presented, consist of salespersons' salaries $$96,000$; depreciation on equipment $$12,000$; advertising

$$15,600$; and sales commissions $$7,200.$ The commissions represent commissions paid. At December $31,$$$3,600$ of

commissions have been earned by salespersons but have not been paid. All compensation should be recorded as Salaries and

Wages Expense.

Administrative expenses, as presented, consist of office salaries $$56,400$; dividends $$21,600$; utilities $$14,400$; interest

expense $$2,400$; and rent expense $$28,800,$ which includes prepayments totaling $$7,200$ for the first quarter of $2018.$