Net Sales Cost of Sales Gross Profit Other Income Total Income Operating Expenses Distribution Expenses Administrative Expenses Maria's Merchandising Income Statement For year ended December 31, 2020 Note 1 2 3 P 65,800 43,400 2,600 Other Expenses Finance Cost 6 7 2,400 Net Income Note 1 - Net Sales Gross Sales Less: Sales Returns & Allowances P 32,000 Sales Discount 48,000 Net Sales Note 2-Cost of Sales Merchandise Inventory, Beginning Add: Net Cost of Purchases Purchases Less: Purchase Returns & Allowances Purchase Discount Net Purchases Add: Freight-In Goods Available for Sale Less: Merchandise Inventory, End Cost of Sales P 702,000 230,000 P 472,000 50,000 P522,000 114,200 P 407, 800 P 782,000 80,000 P 702,000 P220,000 60,000 P 34,000 2 6,000 P 160,000 10,000 P180,000 170,000 P350,000 120,000 P 230,000