Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1.

Inventory Classification	January 1, 20x1	December 31, 20x1
Raw material	$ 55,000	$ 70,000
Work in process	120,000	115,000
Finished goods	160,000	165,000

During 20x1, the company purchased $240,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follows:

Indirect material	$ 11,000
Indirect labor	26,000
Depreciation on plant and equipment	100,000
Utilities	25,000
Other	30,000

Sales revenue was $1,105,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firms tax rate is 40 percent.

EX 2-29 (Algo) Part 3: Prepare an income statement.

3. Prepare an income statement.