Radix, Inc., operates primarily as a distributor of components for gasoline compressors. In the first quarter of 2015, the company reported a gross profit of $248,000 on net sales of $1,360,000. After considering selling, general, and administrative expenses, the company reported pretax income of $136,000 and a related tax expense of $40,800.

During the second quarter of 2015, the company reported net sales of $2,150,000 related to the compressor business, and it experienced a LIFO liquidation due to the sharp increase in sales. The LIFO cost of sales for the second quarter consisted of purchases from the current year totaling $1,564,000 and 2,100 units that were purchased in 2014 at a unit cost of $58. The current replacement cost for the 2014 units is $72 per unit, and it is expected that physical inventory levels at the end of 2015 will exceed those at the end of 2014. Unrelated to the distribution of components for compressors, the company also distributes oils and lubricants to automotive repair establishments. This operation reported sales of $540,000 and FIFO cost of sales of $364,000 before consideration of lower-of-cost-or-market adjustments. Although the first quarter of 2015 included a market write-down of $18,000 in cost of sales, the second quarter experienced sharp increases in the market value of petroleum-based products which more than offset the declines in value experienced earlier in the year.

The company reported selling, general, and administrative expenses for the second quarter of 2015 in the amount of $210,000. Although management had strong pretax results in the second quarter, it is anticipating slightly lower pretax profits for the second half of 2015 in the amount of $438,000. The company is estimating annual tax credits of $17,000 and annual selling expenses of $32,000 which will never be deductible for tax purposes. The statutory tax rate is as follows:

15% on the first $50,000 of taxable income, 25% on the next $50,000 of taxable income, 30% on the next $150,000 of taxable income, and 35% on all remaining taxable income.

Required

Prepare an income statement for the second quarter of 2015 and the 2015 year-to-date.