Cut Hair is a retail chain specializing in salon$-$quality hair$-$care products. During the year, Cut Hair had sales of $$39,300,000.$ The company began the year with $$2,500,000$ of merchandise inventory and ended the

year with $$3,245,000$ of inventory. During the year, Cut Hair purchased $$22,895,000$ of merchandise inventory. The company's selling, general, and administrative expenses totaled $$7,185,000$ for the year.

Prepare Cut Hair's income statement for the year.

Begin by calculating Cut Hair's cost of goods sold using the table below

Cut Hair

Calculation of Cost of Goods Sold

For the Year Ended

Plus:

Less: