A list of accounts and balances below are ending December 31, 2019, from Wesley's Machining & Welding, Inc. (WMW). Using these account balances, complete a cost of goods sold (COGS) worksheet. Then construct the income statement for the period ending December 31, 2019. Use the balance from the COGS worksheet for COGS on the income statement. Separate operating expenses from the non-operating expenses to sum operating income as EBITD (earnings before interest, taxes, depreciation). Then subtract non-operating expenses and add in non-operating income to determine net income.

Account

Balance

Beginning inventory (January 1, 2019)

$22,000

Depreciation expenses

$12,000

Ending inventory (December 31, 2019)

$16,000

Income tax expenses

$5,700

Insurance expense

$2,500

Interest expenses

$3,000

Interest revenue

$500

Marketing expenses

$7,000

Office supplies expenses

$1,800

Purchase discounts (for inventory)

$2,000

Purchases (inventory)

$100,000

Sales commission expenses (20%)

$50,000

Total revenue for the year ending December 31, 2019

$260,000

Transportation in (inventory)

$4,500

Utilities expense

$13,000

Wages expenses

$52,000