Reference no: EM133134552

Question - Rita Retail is a merchandising business. The store's building contains a large selling area with merchandise displays and shelves, and a smaller back office area where administrative tasks are performed, such as payroll, marketing and HR. The following information is available.

Salaries are for the salespeople, as well as the office staff. Office staff salaries totaled $80,000 for the year.

The office area is allocated 20% of the utility costs.

Depreciation is charged on the merchandise displays only. Rita Retail Income Statement For the Year Ended December 31, 2018 Sales Revenue $1,400,000 Expenses Cost of Goods Sold $890,000 Salaries Expense 210,000 Office Supplies Expense 12,000 Insurance Expense 42,000 Utilities Expense 7,000 Depreciation Expense 5,000 Total Expenses 1,166,000 Net Income $234,000

Show a multiple-step income statement for Rita Retail using these amounts.