Presented here is information related to Baja Co. for the month of January 1998:

Beginning merchandise inventory was \(\$ 42,000\), and ending inventory was \(\$ 63,000\).
\section*{Instructions}
Prepare an income statement using the format presented on page 247 . Operating expenses should not be divided into selling and administrative expenses.

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(8) Freight-in Rent expense Freight-out $ 10,000 20,000 7,000 Salary expense 61,000 Insurance expense 12,000 Sales discounts 8,000 Purchases 200,000 Sales returns and allowances 13,000 Purchase discounts 3,000 Sales 312,000 Purchase returns and allowances 6,000