I am an accounting student.

From this chart of accounts, could you give an example of how I would setup a net income calculation to be used to calculate federal income taxes for this company?

Document No. 2 WAREN SPORTS SUPPLY CHART OF GENERAL LEDGER ACCOUNTS CATEGORY ACCOUNT NUMBER ACCOUNT ASSETS Cash Accounts receivable Allowance for doubtful accounts Inventory Prepaid expenses Marketable securities Interest receivable Fixed assets Accumulated depreciation Notes recelvable 10100 10200 10300 10400 10500 1060 10600 10700 10800 10900 11000 20100 20200 20300 20400 20500 20600 20700 20800 20900 21000 LIABILITIES Accounts payable Wages and salarles payable Federal income taxes withheld State unemployment taxes payable Federal unemployment taxes payable FICA taxes payable Federal Income taxes payable Dividends payable Interest payable Notes payable EQUITIES 26000 27000 28000 29000 Common stock Paid-in capital in excess of par Income summary Retained earnings INCOME STATEMENT (Gross profit) 30100 30200 30300 30400 30500 30600 30700 30800 Sales Sales returns and allowances Sales discounts taken Cost of goods sold Purchases Purchases returns and allowances Purchases discounts taken Freight-in 30900 31000 31100 31200 Gairloss on sale of fixed assets Gainloss on sale of marketable securities Interest/dividend income Miscellaneous revenue (Other revenues) 40100 40200 40300 40400 (Operating expenses) 40500 40600 40700 40800 40900 41000 Rent expense Advertising expense Office supplies expense Depreciation expense Wages and salaries expense Payroll tax expense Federal income tax expense Interest expense Bad debt expense Other operating expense