-Your answer is partially correct. The following are selected ledger accounts of Waterway Corporation at December 31, 2025. Cash $233,100 Salaries and wages expense (sales) $357,840 Inventory 674,100 Salaries and wages expense (office) 435,960 Sales revenue 5,386,500 Purchase returns 18,900 Unearned sales revenue 147.420 Sales returns and allowances 99,540 Purchases 3,510,360 Freight-in 90,720 Sales discounts 42,840 Accounts receivable 179,550 Purchase discounts 34,020 Sales commissions 104,580 Selling expenses 86,940 Telephone and Internet expense (sales) 21,420 Accounting and legal services 41.580 Utilities expense (office) 40,320 Insurance expense (office) 30,240 Miscellaneous office expenses 10,080 Advertising expense 68,040 Rent revenue 302,400 Delivery expense 117,180 Casualty loss (before tax) 88,200 Depreciation expense (office equipment) 60,480 Interest expense 221,540 Depreciation expense (sales equipment) 45.360 Common stock ($10 par) 600,000 Waterway's effective tax rate on all items is 20%. A physical inventory indicates that the ending inventory is $686,000. Net Sales Cost of Goods Sold Gross Profit Selling Expenses Administrative Expenses Income from Operations Rent Revenue Interest Expense income before Income Tax Income Tax Net Income/(L) Earnings per share eTextbook and Media WATERWAY CORPORATION Income Statement For the Year Ended December 31, 2025 5244120