1. Preparation of an income statement

Plants Supreme, Inc., a small retail store that sells houseplants, started business on January 1, 20X1. At the end of January, 20X1, the following information was available:

Sales of plants for cash	$50,000
Sales of plants for credit	3,000
Cost of plants purchased in the month of which half remained at the end of January	60,000

Cash expenditures during January:

Salaries	$4,500
Telephone	100
Office Supplies (of which half were consumed in January)	200
Electricity	200
Rent on the store for January, 20X1 which will not be paid until February 20X1	800

The Company earned $2,700 from investments it held during the year and was subject to an income tax rate of 25%.

Required:

Using the above information, prepare a multiple-step income statement for Plants Supreme for the month ended January 31, 20X1.