I think my calculations are wrong. this is the quetion: PREPARE income statement Prepare correct detailed multiple-step income statement.

 P5-5B An inexperienced accountant prepared this condensed income statement 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


Net sales                              $952,000

Other revenues                        16,000


Cost of goods sold                     548,000

Gross profit                                420,000

Operating expenses

Selling expenses                    160,000

Administrative expenses         104,000


Net earnings                             $156,000

As an experienced, knowledgeable accountant, you review the statement and determine the following facts.

1.  Net sales consist of sales $972,000, less freight-out on merchandise sold $20,000.

2.  Other revenues consist of sales discounts $12,000 and interest revenue $4,000.

3.  Selling expenses consist of salespersons’ salaries $88,000; depreciation on equipment $4,000; sales returns and allowances $46,000; advertising $12,000; and sales 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 includes prepayments totaling $2,000 for the first month of 2015. The utilities represent utilities paid. At December 31, utility expense of $3,000 has been incurred but not paid.