Exercise 2-40 Prepare Statements for a Merchandising Company (LO 2-2)

Hill Street Electronics has provided the following information for last year:

Sales revenue $ 8,000,000

Store rent 440,000

Store utilities 270,000

Administrative costs 580,000

Sales commissions 1,300,000

Merchandise purchases 5,500,000

Transportation-in costs 210,000

Merchandise inventory, March 1 370,000

Merchandise inventory, February 28 420,000

Required: Prepare an income statement for last year with a supporting cost of goods sold statement.