Jean and Tom Perritz own and manage Happy Home Helpers, Inc. $($HHH$),$ a house$-$cleaning service. Each cleaning $($cleaning one house one time$)$ takes a team of three

house cleaners about $1\mathrm{.}5$ hours. On average, HHH completes about $15,000$ cleanings per year. The following total costs are associated with the total cleanings:

Next year, HHH expects to purchase $$25,600$ of direct materials. Projected beginning and ending inventories for direct materials are as follows:

Direct Materials Inventory

There is no work$-$in$-$process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. HHH expects to sell $15,000$

cleanings at a price of $$45$ each next year. Total selling expense is projected at $$23,000,$ and total administrative expense is projected at $$53,000.$

Required:

Prepare an income statement in good form.

Happy Home Helpers, Inc.

Income Statement

For the Coming Year

$

Less operating expenses:

$

$