A Merchandise Business
Income Statement
For the Year Ended December 31, 20~
Revenue
Sales Revenue			$ 52,000
Sales Returns	$ (1,000)
Sales Discounts	(400)		(1,400)
Net Sales					$ 50,600
Cost of Goods Sold
Beginning Inventory			$ 25,000
Add: Purchases	$ 39,000
Less: Purchase Returns and Allowances	(1,100)
Less: Purchase Discounts	(200)
Net Purchases			37,700
Add: Frieght-in			800
Goods Available for Sale			63,500
Less: Ending Inventory			(29,000)
Cost of Goods Sold					34,500
Gross Profit					$ 16,100
Operating Expenses
Advertising Expense			$ 1,100
Amortization Expense - Furniture			1,400
Amortization Expense - Equipment			2,700
Amortization Expense - Truck			120
Bad Debt Expense			110
Car Expense			300
Frieght-out			400
Insurance Expense			700
Maintenance Expense			2,000
Miscellaneous Expense			200
Rent Expense			350
Supplies Expense			200
Utilities Expense			2,550
Total Operating Expenses					$ 12,130
Operating Income (Income before Interest, Taxes and Extraordinary Items)					$ 3,970
Interest Expense			$ (950)
Loss on Sale of Assets			(4,000)
Total Non-Operating Expenses					(4,950)
Net Income					$ (980)