Roderick Thompson is the sole proprietor of Majestic Pups, a business specializing in the sale of high-end pet gifts and accessories. Majestic Pups' sales totaled $1,060,000 during the most recent year. During the year, the company spent $53,000 on expenses relating to website maintenance, $29,500 on marketing, and $28,800 on wrapping, boxing, and shipping the goods to customers. Majestic Pups also spent $633,000 on inventory purchases and an additional $19,700 on freight-in charges. The company started the year with $17,350 of inventory on hand and ended the year with $13,100 of inventory. Prepare Majestic Pups' income statement for the most recent year. Begin by calculating the cost of goods sold for the year. Majestic Pups Cost of Goods Sold For Current Year Beginning inventory 17,350 Plus: Purchases and freight-in 652,700 Cost of goods available for sale 670,050 Less: Ending inventory Cost of goods sold Prepare Majestic Pups' income statement for the most recent year. Majestic Pups Income Statement 13,100 656,950 Sales revenues Less: Cost of goods sold For Current Year $ 1,060,000 656,950 Gross profit Less: 403,050 Operating expenses Website expenses 53,000 Marketing expenses 29,500 28,800 111,300 Freight-out expenses $ 291,750 Operating income