Aparicio Company, a manufacturer of quality handmade baseball gloves, has had a steady growth in sales for the past 5 years. However, increased competition has led Ms Aparicio, the president, to believe that an aggressive marketing campaign will be necessary next year to maintain the company's present growth. To prepare for next year's marketing campaign, the company's controller has prepared and presented Ms. aparicio with the following data for the current year, 2018:

Variable Cost ( per baseball glove)	Total V.C. = 18.50
Direct Materials	$3.00
Direct Manufacturing labor	$8.00
Variable Overhead (manf. marketing, distribution, service)	$7.50
Fixed Costs	Total F.C. = 214,500
Manufacuring	$20,000
Marketing, distribution, and customer service	$194,500
Selling Price	$35.00
Expected Sales	$770,000
Income tax rate	40%

Prepare a financial accounting income statement for 2018 using the gross margin approach. All variable overhead costs are classified as manufacturing costs. Direct Materials beginning inventory = 0. Similarly, Direct Materials ending inventory, Work in Process begining and ending inventories as well as Finished goods beginning and ending inventory are all equal to zero.