The financial records of Dunbar Inc. were destroyed by fire at the end of 2019. Fortunately, the controller had kept the following statistical data related to the income statement.
1. The beginning merchandise inventory was $92,000 and decreased 20% during the current year.
2. Sales discounts amount to $17,000.
3. 30,000 ordinary shares were outstanding for the entire year.
4. Interest expense was $20,000.
5. The income tax rate is 30%.
6. Cost of goods sold amounts to $500,000.
7. Administrative expenses are 18% of cost of goods sold but only 8% of gross sales.
8. Four-fifths of the operating expenses relate to sales activities.
Instructions
From the foregoing information, prepare an income statement for the year 2019.