The records of Whirlpools Inc. show the following data for the year. Assume a periodic inventory system.

Requirements:

a. Please prepare the companys single-step income statement.

b. Please prepare the journal entry at period-end to eliminate beginning inventory and to record ending inventory.

\begin{tabular}{|l|r|} \hline Sales revenue & $480,000 \\ \hline Purchases & $336,000 \\ \hline Net income as a percent of sales revenue & 159 \\ \hline Beginning inventory & $60,000 \\ \hline Expenses including income taxes & $108,000 \\ \hline Tax rate & 25% \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Sales revenue & $ & 480,000 \\ \hline \multicolumn{3}{|l|}{ Cost of goods sold: } \\ \hline Beginning inventory & $ & 60,000 \\ \hline Plus: Purchases & & 336,000 \\ \hline Cost of goods available for sale & & 396,000 \\ \hline Less: Ending inventory & & 96,000 \\ \hline Cost of goods sold & & 300,000 \\ \hline Gross margin & & 180,000 \\ \hline Expenses & & (90,000) \\ \hline Income before taxes & & 90,000 \\ \hline Income taxes & & (18,000) \\ \hline Net income & $ & 72,000 \\ \hline \end{tabular}