Haze Enterprise provided the following:

Sales 7,500,000.00

Inventories - Jan 1

Raw Materials 200,000.00

Goods in Process 240,000.00

Finished Goods 360,000.00

Inventories - Dec 31

Raw Materials 280,000.00

Goods in process 170,000.00

Finished Goods 300,000.00

Purchases 3,000,000.00

Direct Labor 950,000.00

Indirect Labor 250,000.00

Superintendent 210,000.00

Light, heat and power 320,000.00

Rent- Factory Building 120,000.00

Repair and Maintenance Machinery 50,000.00

Factory Supplies Used 110,000.00

Sales, Salaries 400,000.00

Advertising 160,000.00

Depreciation - Store Equipment 70,000.00

Office Salaries 150,000.00

Depreciation - Office Equipment 40,000.00

Depreciation- Machinery 60,000.00

Sales , Returns and Allowances 50,000.00

Interest Income 10,000.00

Gain on Sale of Equipment 100,000.00

Delivery Expenses 200,000.00

Accounting and Legal Fees 150,000.00

Office Expenses 250,000.00

Earthquake Loss 2,000,000.00

Gain from Expropriation of Asset 100,000.00

Income Tax Expenses 320,000.00

* Prepare an Income Statement using the functional Method with Appropriate Notes for the year Ended Dec. 31, 2019

*hint: sales return to be deducted directly to total sales to come up with Net sales