Wright Company – correct multi-step income statement – 

An inexperienced accountant prepared this condensed incomestatement for Wright Company, a retail firm that has been in business for a number of years.,WRIGHT COMPANY,Income Statement,For the Year Ended December 31, 2014,Revenues,Net sales,$952,000,Other revenues16,000,968,000,Cost of goods sold 548,000,Gross profit,420,000,Operating expenses,Sellingexpenses,160,000,Administrativeexpenses 104,000,264,000,Net earnings,$156,000,As an experienced, knowledgeable accountant, you review thestatement and determine the following facts.,1.,Net salesconsist of sales $972,000, less freight-out on merchandise sold $20,000.,2.,Other revenuesconsist of sales discounts $12,000 and interest revenue $4,000.,3.,Sellingexpenses consist of salespersons’ salaries $88,000; depreciation on equipment$4,000; sales returns and allowances $46,000; advertising $12,000; andsales commissions $10,000. All compensation should be recorded as Salaries and Wages Expense.,4.,Administrative expenses consist of office salaries $54,000; dividends $14,000;utilities$13,000; interest expense $3,000; and rent expense $20,000, which includesprepayments totaling $2,000 for the first month of 2015. The utilities represent utilities paid. AtDecember 31, utility expense of $3,000 has been incurred but not paid.,Instructions,Prepare a correct detailed multiple-step income statement.