=+$712,800 $530,400 _________ _________ _________ _________ The income statement for the year ended June 30, 2010, is as follows:

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,134,900 Cost of merchandise sold . . . . . . . . . . . . . 698,400 __________ Gross profit . . . . . . . . . . . . . . . . . . . . . . . $ 436,500 Operating expenses:

Depreciation expense . . . . . . . . . . . . . . $ 8,700 Other operating expenses . . . . . . . . . . . 289,800 _________ Total operating expenses . . . . . . . . . . 298,500 __________ Operating income . . . . . . . . . . . . . . . . . . $ 138,000 Other expenses: