Exercise 2: XYZ Retailers Below you will find items for the income statement for XYZ Retailers for the year ended June 30, 2011 Construct an income statement. XYZ Retailers Year ended June 30, 2011 Beginning Inventory Rent expense Insurance expense Gross sales Wages & salaries expense Merchandise Purchases Advertising expense Ending inventory Sales returns and allowances Website marketing expense Depreciation expense Electricity expense Bad debts expense Public relations expense XYZ Retailers 2 3 Income Statement 4 Year Ended June 30, 2011 5 Is Thousands 5 T Reven 8 Gross Sales 250 9 less: Sales Returns and Allowances -5 10 Less Bad Debts Expense -1.5 11 Cost of Goods Sol 12 Beginning Inventory 40 13 Add Murchandise Purchases 100 14 tess: Ending Inventory -60 15 Total COGS 16 17 Grow Profit 13 19. Operating Expenses 20 Wages and Salaries Expense 465 21 Insurance Expense 22 Public Relations Expense 2 23 Electricity Expense 15 24 Depreciation Expense 10 25 Advertising Expense 5 26 Rent Expenses 30 27 Website Marketing Expense 2.5 28 Total Operating Expenses $40,000 $30,000 $1,000 $250,000 $46,500 $100,000 $5,000 $60,000 $5,000 $7,500 $10,000 $1,500 $1,500 $2,000 103.5 30 Net Income Before Taxes 31 Less: income Taxes 32 33 Net Income After Taxes 34 35 36 Income Statement Excercise One Income! + Ready an for International Programs Focus 92%