please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) ### Montreal Retail Corporation: Financial Operations Overview (Year Ended 31 December 20X6)#### Financial Details:- **Cost of Merchandise Sold:** $115,000- **Inventory Warehousing Cost:** $33,000- **Accounts Payable:** $133,000- **Sales Revenue:** $655,000- **Accumulated Depreciation:** $153,000- **Sales Returns:** $6,300- **Unearned Revenue:** $3,300- **Depreciation Expense:** $63,000- **Rent Revenue:** $7,300- **Employee Wages, Salaries, and Benefits:** $113,000- **Interest Expense:** $7,300- **Investment Revenue:** $4,300- **Loss on Disposal of Geographic Segment:** $43,000- **Earnings from Discontinued Geographic Segment:** $33,000- **Distribution Expenses:** $119,000- **General and Administrative Expenses:** $59,000- **Loss on Sale of Noncurrent Assets:** $14,300- **Income Tax Expense:** $7- **Fire Loss:** $33,000#### Additional Information:- Functional costs exclude depreciation or employee costs.- **Depreciation Expense Allocation:** - 55% to warehousing - 30% to administrative costs - 15% to distribution expenses- **Employee Wages, Salaries, and Benefits Allocation:** - 25% to warehousing and merchandising - 40% to administrative costs - 35% to distribution expenses- **Company’s Income Tax Rate:** 25%#### Requirement:1. **Income Statement Preparation:** - Format: Single-step, based on nature of expense - Include revenues, gains, expenses, and losses#### Income Statement Layout:The provided layout (image) is a template for constructing the income statement, showing sections for "Revenues and Gains" as well as "Expenses and Losses," categorized under "Operating and Administrative Expenses" and "Other Expenses and Losses."---This overview can assist in understanding the financial operations and expense allocations for Montreal Retail Corporation for the specified fiscal year. The income statement should comply with the layout to highlight the financial performance effectively. ### Educational Transcription: Income Statement Template**Context:**This transcription is intended for instructional purposes, focusing on the creation of income statements in a functional, multiple-step format. **Image Content Overview:**#### Income Statement Format**Header:**- **MONTREAL RETAIL CORPORATION**- **Income Statement**- **Year Ended 31 December 20X6**- *(in Canadian dollars)***Sections of the Income Statement:**1. **Net Sales:** - [Space for values and calculations]2. **Operating and Administrative Expenses:** - Various lines provided for detailed entries. - **Total Operating and Administrative Expenses:** - Calculated total: **$0** [Space for values and calculations]3. **Income from Operations:** - [Space for values and calculations]4. **Other Revenues and Gains:** - [Space for values and calculations]5. **Other Expenses and Losses:** - [Space for values and calculations]6. **Total Expenses and Losses:** - [Calculated field]7. **Earnings from Continuing Operations:** - [Space for values and calculations]8. **Net Income and Comprehensive Income:** - Amount shown: **$0** [Space for additional calculations]**Instructions:**- The exercise requires filling out the template to prepare an income statement using a functional approach.- It is essential to indicate loss amounts clearly as per the instructional note. The image serves as a teaching tool to familiarize students with structuring income statements, providing a comprehensive framework for organizing revenue, expenses, gains, and losses effectively.

An income statement stands for the statement that shows profits and loss of the firm, its revenue…

The information below pertains to the operations of Montreal Retail Corporation for the year ended 31 December 20X6: Cost of merchandise sold Inventory warehousing cost Accounts payable Sales revenue Accumulated depreciation Sales returns Unearned revenue Depreciation expense Rent revenue Employee wages, salaries, and benefits Interest expense Investment revenue $115,000 33,000 133,000 655,000 153,000 6,300 3,300 63,000 5,300 113,000 7,300 4,300