Extracted text: 2. The Following Account balances are taken from the books of Winterfell Merchandising for the year ended on June 30, 2019. Create an income statement based on the following balances. Comment on the Statement atter, state if it is favorable or unfavorable Sales 664,000 Purchases 445,000 Inventory, July 1, 2018 180,000 Sales Returns and Allowances 6,400 Sales Discount 13,280 Purchase Return and Allowances 14,400 Purchase Discount 8,900 Freight in 2,560 Inventory, June 30, 2019 118,400 Advertising Expense 5,540 Sales Salaries 48,000 Freight out 20,000 Utilities - Store 7,000 Store Supplies 27,600 Office Salaries 22,000 Utilities- office 4,800 Office Supplies 2,400 Depreciation - Delivery van 2,500 Dividends Income 2,500 Rent income 12,000 interest expense 17,000 Discount lost 3,200 Depreciation Office Furniture 12,000 Loss on sale of equipment 5,000