Presented below are selected ledger accounts of Woods Corporation at December 31, 2019.

Woods's effective tax rate on all items is 30%. A physical inventory indicates that the ending inventory is $686,000.
Instructions
Prepare a 2019 income statement for Woods Corporation.

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$ 185,000 Salaries and wages expense (sales) $284,000 Cash 535,000 Salaries and wages expense (office) Inventory (beginning) 346,000 Sales revenue 4,175,000 Purchase returns 15,000 Unearned sales revenue 117,000 Sales returns and allowances 79,000 Purchases 2,786,000 Freight-in 72,000 Sales discounts 34,000 Accounts receivable 142,500 83,000 Purchase discounts 27,000 Sales commissions 69,000 Telephone and Internet expense (sales) Selling expenses 17,000 Accounting and legal services 33,000 Utilities expense (office) 32,000 Insurance expense (office) 24,000 Miscellaneous office expenses 8,000 Advertising expense 54,000 Rent revenue 240,000 Delivery expense 93,000 Loss on sale of division 60,000 48,000 Interest expense 176,000 Depreciation expense (office equipment) 36,000 Share capital-ordinary ($10 par) 900,000 Depreciation expense (sales equipment)