A B Revenues Sales Less: Sales discounts C D E F MONTAQUE CORPORATION Income Statement For the Year Ending December 31, 20X5 (all amounts in thousands of dollars) Sales returns and allowances Net sales Cost of goods sold Beginning inventory, Jan. 1 Add: Purchases Freight-in Less: Purchase discounts Purchase returns & allowances Net purchases Goods available for sale Less: Ending inventory, Dec. 31 Cost of goods sold Gross profit Selling expenses Advertising Salaries Depreciation Utilities General & administrative expenses Salaries Depreciation Utilities Other expenses Interest Income before taxes Income tax expense Net income This solution is reached by setting up the format, inserting the knowns, and solving for the unknowns. Creating formulas in the excel template greatly simplifies this problem. Revenues Net sales Expenses MONTAQUE CORPORATION Income Statement For the Year Ending December 31, 20X5 (all amounts in thousands of dollars) Cost of goods sold Selling General & administrative expenses Interest Income before taxes Income tax expense Net income