The university book store has just completed its busy fall season. Taking the following facts into consideration, construct an income statement for the month ending September 30.

a. Sales, both cash and on account, totaled $2,000,000.

b. Salary and wages equaled 14 percent of sales.

c. All items were priced to sell at 1.6 times their cost.

d. Insurance expense for the period was $3,000.

e. Miscellaneous expense equaled 2 percent of cost of goods sold.

f. Advertising and promotion cost 5 percent of sales.

g. Because the store is run by the university foundation, no taxes are levied.

Compute NET INCOME for September.

$218,000

$342,000

$286,000

$312,000