The following selected information is presented for Okanagan Corporation for the year ended February 29, 2012. Okanagan uses a periodic inventory system.

Instructions
Prepare a multiple-step income statement.

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Merchandise inventory, Feb. 29, 2012 61,000 210,000 30,000 16,000 335,000 21,000 12,000 7,000 Accounts receivable $25,000 Administrative expenses Common shares Purchase discounts Purchase returns and allowances 85,000 Freight in Income tax expense Insurance expense Interest expense Merchandise inventory, Mar. 1, 2011 6,900 10,000 6,000 42,000 Sales discounts Sales returns and allowances Selling expenses Unearned revenue