Income Statement for a Merchandiser Fill in the missing amounts in the following income statement for Carpenters Department Store Inc.

Sales revenue $125,600 Less: Sales returns and allowances (a)

Net sales $122,040 Cost of goods sold:

Beginning inventory $ 23,400 Purchases $ (b)

Less: Purchase discounts 1,300 Net purchases $ (c)

Add: Transportation-in 6,550 Cost of goods purchased 81,150 Cost of goods available for sale $104,550 Less: Ending inventory (e)

Cost of goods sold (d)

Gross profi t $ 38,600 Operating expenses (f)

Income before tax $ 26,300 Income tax expense 10,300 Net income $ (g)

AppendixLO1