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.

Use the associated Excel spreadsheet to complete the assignment. Note, some of the income statement line items are already completed. Fill in the remaining account names and totals in the fields highlighted in the spreadsheet. Formulas have been pre-set for your convenience to use if you want.

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 a) WMW COGS Worksheet Cost of Goods Sold Worksheet Inventory Purchases Less: Purchase discounts (2%) Net Purchases Add: Transportation-in Net cost of purchases Cost of goods available for sale Less: Inventory Cost of goods sold $ b) WMW Incomee Statemt Wesley's Machining & Welding, Inc. Income Statement Operating Revenue Total Revenue Gross Margin Operating Expenses Sales commissions Total operating expenses Income from operations (EBITDA) Non-operating Expenses Non-operating Revenue NET INCOME $