Exercise #6 (10 points) Callegari Basket Company had a $10,500 beginning balance in its Merchandise Inventory account. The following information regarding Callegari's purchases and sales of inventory during its 2015 accounting period was drawn from the company's accounting 1) Purchased $38,000 of inventory under terms 2/10, nev/30. Transportation costs amounted to Seoo. The goods were delivered FOB shipping point. Callegari paid for the inverstory after the discount period had expired. 2) Paid advertising expenses in the amount of $1,500. 3) Purchased $35,000 of inventory under terms 2/10, net/30. Transportation costs amounted to $900. The goods were delivered to Callegari FOB destination. Callegari paid for the 4) Sold inventory that cost $56,000 for $94,000. Transportation costs for goods delivered to 5) A customer returned goods purchased for $9,000 that had cost $5,000. Callegari paid the 6) Incurred operating expenses of $5,150 on account. inventory within the discount period. customers amounted to $3,200. The goods were delivered FOB destination. transportation cost of $250. Required: a) Calculate the balance in the Inventory account at the end of the accounting period. b) Prepare a multi-step income statement for the year-ended 12/31/1s. (Headings provided). Callegari Basket Company Income Statement For Year Ended 12/31/15 Revenues: Operating expenses: Total Expenses Net Income