$143,500.00 Revenue: Gross Sales Less: Sales Returns and Allowances Net Sales Cost of Goods Sold: Beginning Inventory Add: Purchases $143,500.00 $10,250.00 62,150.00 $72,400.00 10,000.00 62,400.00 $81,100.00 7,500.00 3,800.00 3,950.00 1,400.00 Less: Ending Inventory Cost of Goods Sold Gross Profit (Loss) Expenses: Dues and Subscriptions Estimated Federal Tax Payments Estimated State Tax Payments Insurance Meals and Entertainment Miscellaneous Payroll Taxes Professional Fees Rent Travel Utilities Vehicle Expenses Wages Total Expenses Net Operating Income 3,830.00 1,710.00 8,420.00 1,230.00 1,250.00 25,110.00 58,200.00 $22,900.00 Detail of The Arc's meals and entertainment: $400 Meals associated with business travel 300 Arc employee holiday party Overtime meals for employees Sports tickets for entertaining large customers $1,400 100 600 143,500. 62,400.0 5 81,100 81,100 18 19 19 9 20 10 20a 11 8,420.00 12 21 22 2 Returns and allowances. 2 3 Subtract line 2 from line 1 3 4 Cost of goods sold (from line 42)... 4 5 Gross profit. Subtract line 4 from line 3. Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) .... 6 7 Gross income. Add lines 5 and 6.... z Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising ... 8 Office expense (see instructions)... 18 9 Car and truck expenses (see Pension and profit-sharing plans... instructions)... Rent or lease (see instructions): .... 10 Commissions and fees...... a Vehicles, machinery, and equipment 11 Contract labor (see instructions) b Other business property 20b 12 Depletion ... Repairs and maintenance ..... 21 13 Depreciation and section 179 22 Supplies (not included in Part III) .. expense deduction (not included Taxes and licenses.. in Part III) (see instructions) Travel and meals:.. : 14 Employee benefit programs a Travel .. 24a (other than on line 19)..... b Deductible meals (see 15 Insurance (other than health) 3,950.00 instructions).... 24b 16 Interest (see instructions): 25 Utilities a Mortgage (paid to banks, etc.) 16a Wages (less employment credits).... 26 b Other... 16b 27a Other expenses (from line 48).... 27a 17 Legal and professional services 17 1,710.00 b Reserved for future use. . 27b 28 Total expenses before expenses for business use of home. Add lines 8 through 27a .... 28 29 Tentative profit or loss). Subtract line 28 from line 7.. 29 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method. See instructions, Simplified method filers only: Enter the total square footage of (a) your home: and (b) the part of your home used for business: _. Use the Simplified Method Worksheet in the instructions to figure the amount to enter on line 30....... 23 23 3,830.00 13 24 1,230.00 14 15 1,400 x 25 1,250.00 26 25,110.0 46,900 x 34,200 x 30 31 Net profit or (loss). Subtract line 30 from line 29. If a profit, enter on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3. 31 40,910 X If a loss, you must go to line 32