At the end of Neiman Fields Department Store's fiscal year on December 31, and gross profit under 2007, these accounts appeared in its adjusted trial balance.

periodic approach.

(SO 4, 5) Freight-in $ 5,600 Merchandise Inventory (beginning) 40,500 Purchases 446,000 Purchase Discounts 12,000 Purchase Returns and Allowances 6,400 Sales 727,000 Sales Returns and Allowances 8,000 Additional facts: 1. Merchandise inventory on December 31, 2007, is $71,000. 2. Note that Neiman Fields Department Store uses a periodic system.

Instructions Gross profit $316,300 Prepare an income statement through gross profit for the year ended December 31, 2007.

Calculate missing amounts and assess profitability.