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	$	60,000			$	70,000
Work in process		120,000				115,000
Finished goods		140,000				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	$	10,000
Indirect labor		24,000
Depreciation on plant and equipment		100,000
Utilities		25,000
Other		30,000

Sales revenue was $1,113,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firms tax rate is 40 percent.

3. Prepare an income statement.