A Merchandise Business (Periodic)							A Merchandise Business (Perpetual)
Income Statement							Income Statement
For the Year Ended December 31, 20~							For the Year Ended December 31, 20~
Revenue							Revenue
Sales Revenue			$52,000				Sales Revenue			$52,000
Sales Returns	($1,000)						Sales Returns	($1,000)
Sales Discounts	(400)		(1,400)				Sales Discounts	(400)		(1,400)
Net Sales					$50,600		Net Sales			50,600
							Less: Cost of Goods Sold			(34500)
Cost of Goods Sold							Gross Profit					$16,100
Beginning Inventory			$25,000				Operating Expenses
Add: Purchases	$39,000
Less: Purchase Returns and Allowances	(1,100)						Advertising Expense			$1,100
Less: Purchase Discounts	(200)						Amortization Expense - Furniture			1,400
Net Purchases			37,700				Amortization Expense - Equipment			2,700
Add: Frieght-in			800				Amortization Expense - Truck			120
Goods Available for Sale			63,500				Bad Debt Expense			110
Less: Ending Inventory			(29,000)				Car Expense			300
Cost of Goods Sold					34,500		Frieght-out			400
Gross Profit					$16,100		Frieght-out			400
							Insurance Expense			700
Operating Expenses							Maintenance Expense			2,000
							Miscellaneous Expense			200
Advertising Expense			$1,100				Rent Expense			350
Amortization Expense - Furniture			1,400				Supplies Expense			200
Amortization Expense - Equipment			2,700				Utilities Expense			2,550
Amortization Expense - Truck			120				Total Operating Expenses					$12,130
Bad Debt Expense			110
Car Expense			300				Operating Income (Income before Interest, Taxes and Extraordinary Items)					$3,970
Frieght-out			400
Insurance Expense			700				Interest Expense			($950)
Maintenance Expense			2,000				Loss on Sale of Assets			(4,000)
Miscellaneous Expense			200				Total Non-Operating Expenses					(4,950)
Rent Expense			350
Supplies Expense			200				Net Income					($980)
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)