At the end of Roshek Department Store's fiscal year on December 31, 2015, these accounts appeared in its adjusted trial balance.

Freight-In ...................... $ 5,600

Inventory ...................... 40,500

Purchases ......................447,000

Purchase Discounts .................. 12,000

Purchase Returns and Allowances ............ 6,400

Sales Revenue ................... 725,000

Sales Returns and Allowances ............ 11,000

Additional facts:

1. Merchandise inventory on December 31, 2015, is $65,000.

2. Roshek Department Store uses a periodic system.

Instructions

Prepare an income statement through gross profit for the year ended December 31, 2015.