The 2020 financial statements of Outdoor Waterworks Inc. follow: Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2020 Net sales $1,056,000 Cost of goods sold: Inventory, Dec. 31, 2019. $ 79,860 Purchases 609,840 Goods available for sale $ 689,700 Inventory, Dec. 31, 2020 Cost of goods sold Gross profit from sales Operating expenses Operating profit Interest expense $ 426,690 282,360 $ 144,330 60,390 629,310 12,300 Profit before taxes. $ 132,030 Income taxes 19,314 Profit $ 112,716