Burney Company Merchandising Income Statement For the Year Ended 6/30/19 Sales Less: Cost of Goods Sold 48,500 Beginning Inventory 2,000 +Purchases 20,000 +Freight In 500 Less: Purch Returns/Allow (1,000) Less: Purch Discount (1,500) Goods Available for Sale 20,000 Less: Ending Inventory (3,000) Cost of Goods Sold (17,000) Gross Profit (Margin) 31,500 Less: Selling Expenses (5,000) Less: General & Admin Expenses (4,000) Net Income 22,500 Side Calculation: Gross Sales Less: Sales Returns/Allow Less: Sales Discounts Sales (as reported above)