is a retail chain specializing insalon-quality hair-care products. During theyear, LadyBarber had sales of $39,388,000. The company began the year with $3,500,000 of merchandise inventory and ended the year with $4,445,000 of inventory. During theyear, LadyBarber purchased $24,215,000 of merchandise inventory. Thecompany's selling,general, and administrative expenses totaled $5,450,000 for the year. Prepare LadyBarber's income statement for the year.

Begin by calculating LadyBarber's cost of goods sold using the table below.

Lady Barber

Calculation of Cost of Goods Sold

For the Year Ended

Sales revenues

Plus:

Cost of goods available for sale

Gross profit

Less:

Operating expenses

Operating income