Income Statement During April, Totz Company sold for $875,000 merchandise for which it had paid $612,000.

The company paid wages of $106,000 during the month, all related to work performed during April, and owed an additional

$3,000 of wages at the end of the month. The company’s rent is $1,500 per month. April’s rent was paid at the end of March, and May’s rent will be paid on the first of May. Aside from wages, the company’s only liability is a $10,000 six-month, 12 percent note to the bank, which was issued on January 17, with the interest paid at the end of each calendar month. Other expenses totaled $45,000 for the month. Prepare a formal income statement for April for Totz Company in accordance with generally accepted accounting principles.