Redwood Athletics is a retailer that uses a perpetual inventory system (so cost of goods sold is already accumulated in one account). The following balances were taken from its adjusted trial balance for the year ended December 31, 2026. The income tax rate is 30%.
| Account | Amount |
|---|
| Sales Revenue | $520,000 |
| Sales Returns and Allowances | 12,000 |
| Sales Discounts | 8,000 |
| Cost of Goods Sold | 300,000 |
| Salaries and Wages Expense | 100,000 |
| Advertising Expense | 18,000 |
| Depreciation Expense | 12,000 |
| Rent Expense | 24,000 |
| Insurance Expense | 6,000 |
| Interest Expense | 5,000 |
Required: Prepare a multi-step income statement for the year ended December 31, 2026, showing net sales, gross profit, total operating expenses, operating income, and income tax expense.