David is a businessman and has the following transaction during the year $2022$:

$($Amount in $$)$

Sales $185,000\mathrm{.}00$

Purchases $35,500\mathrm{.}00$

Final inventory $10,750\mathrm{.}00$

Beginning inventory $25,000\mathrm{.}00$

Salaries $9,200\mathrm{.}00$

Payroll expenses $2,790\mathrm{.}00$

Repair and maintenance $3,860\mathrm{.}00$

Insurance Expenses $5,080\mathrm{.}00$

Rent Expense $8,500\mathrm{.}00$

Utilities Expenses $4,380\mathrm{.}00$

Advertising Expenses $9,300\mathrm{.}00$

Professional Fee Expenses $8,900\mathrm{.}00$

During $2022,$ David, $35$ years old, paid $$11,375$ in estimated payments and $$10,150$ for social security.

His wife, $34,$ earned $$45,500$ and $$2,550$ in income withholding.

In $2022$ they opened an IRA account for $$6,000$ each.

Your task is to guide David through the process of completing Form $1040$ and Schedule C based on the financial data provided for the year $2022.$

Follow these steps:

Income Section of $($Form $1040)$:

Enter David's sales and purchases and calculate his gross income.

Consider opening and closing inventory to determine cost of goods sold.

Add up all the sources of income and calculate David's total income.

Expense Section $($Annex C$)$:

List and categorize business expenses, including salaries, payroll expenses, repair and maintenance, insurance, etc. rent, utilities, advertising and professional fees.

Subtract total expenses from total income to find the business's net profit or loss.

Personal Finance Section $($Form $1040)$:

Include David's estimated tax payments and Social Security payments.

Report David's wife's income and income tax withheld.

IRA contributions

Consider the IRA contributions made by both David and his wife.