A list of account balances for a Corporation follows:

Revenue and expenses: January 1 inventories:

Purchases of raw materials $140,000 Raw materials $ 45,000

Direct labor 225,000 Work in process 30,000

Indirect labor 40,000 Finished goods 105,000

Rent factory 84,000

Depreciation machinery 35,000 December 31 inventories:

Insurance factory 18,000 Raw materials $ 40,000

Salespersons salaries 72,000 Work in process 35,000

Maintenance machinery 12,000 Finished goods 110,000

Administrative salaries 50,000

Miscellaneous factory 26,000

Miscellaneous office 40,000

Sales 850,000

Required: Prepare an income statement. Use this format.

Net Revenues

Less: Cost of Goods Sold

Gross Margin

Less Operating Expenses

Net Income

Also separately indicate here the Cost of Goods Manufactured _________________ .

Please show step by step what you added to get each item, Thank you!