Re-organize the scrambled accounts into the income statement for Pet Land Inc., a pet food and accessories retailer in a small Canadian town.

You will have to calculate Sales Revenue, Cost of Goods Sold, the amount of tax that was paid, the totals for the sections of the statement and determine Gross Margin, Operating Margin, Income Before Tax and Net Income.

Compile Sales Revenue from Gross Sales Revenue and record it on the statement.

Compile the Cost of Goods Sold from the appropriate accounts and add it to the statement. Calculate the Gross Margin and record it on the statement.

List the Operating Expenses on the statement and total it. Calculate the Operating Margin and record it on the statement.

List the Non-operating Expenses on the statement, calculate and record Income Before Tax, calculate and record Taxes and calculate and record Net Income.



Cleaning & Maintenance5,000

Office Supplies 2,000

Discounts12,300

Fixed Utilities (telephone, heat, hydro)2,000

Purchases256,750

Depreciation15,000

Beginning Inventory42,500

Taxes  34% You calculate

Gross Sales Revenue697,200

Closing Inventory33,250

Returns19,900

Salaries176,000

Interest Expense7,000

Advertising & Promotion25,000

Ending Inventory33,250