Requirement 1. Prepare an income statement for

Charlie's Pets

for the year ended December 31,

2024.

	Charlie's Pets
	Income Statement
	Year Ended December 31, 2024
Revenue:
Cost of Goods Sold:
Cost of Goods Sold
Gross Profit
Selling and Administrative Expenses:
Total Selling and Administrative Expenses
Operating Income (Loss)

Requirement 2.

Charlie's Pets

sold

3,500

units. Determine the unit cost of the merchandise sold, rounded to the nearest cent.

Cost per unit =

Merchandise Inventory on December 31, 2024	$10,700
Merchandise Inventory on January 1, 2024	15,000
Net Sales Revenue	59,000
Utilities Expense for the shop	4,000
Rent for the shop	4,000
Sales Commissions	2,550
Purchases of Merchandise Inventory	24,000