Prepare an income statement based on the following data: 1 Merchandise inventory 30,000 (1. Jan) 2 Purchases 50000 3 Sales income 200000 4 Merchandise inventory (Dec. 31) 12,000 5 Purchase returns 12000 6 Total selling expenses 12000 7 Total general expenses 10000 8 Sales retuns 4000 6000 90000 85000 13650