8. Information from the accounts of Natalie Company is shown below:

Sales	$9,000,000
Purchases	5,000,000
Operating expenses	1,100,000
Gain on sale of equipment	100,000
Gain on sale of component	1,000,000
Operating loss from disposed component	200,000
Merchandise inventory, 12/31/16	1,900,000

The merchandise inventory on January 1, 2016, was $3,200,000. There were 250,000 shares of common stock outstanding during the entire year.

Required:

Assuming a 30% income tax rate, prepare a 2016 income statement for Natalie Company. Use a multiple-step format.