Salon Cuts is a retail chain specializing in salon-quality hair care products. During the year, Salon Cuts had sales of $39,235,000. The company began the year with $2,985,000 of merchandise inventory and ended the year with $3,785,000 of Inventory. During the year, Salon Cuts purchased $23,010,000 of merchandise Inventory The company's selling general, and administrative expenses totaled $5,775,000 for the year. Prepare Salon Cuts' income statement for the year. Begin by calculating Salon Cuts' cost of goods sold using the table below. Salon Cuts Calculation of Cost of Goods Sold For the Year Ended Beginning inventory 2985000 Plus: Purchases Cost of goods available for sale Less: Ending inventory Cost of goods sold Now prepare Salon Cuts' income statement for the year. Salon Cuts Income Statement For the Year Ended Sales revenues Less: Cost of goods sold Gross profit Less: Operating expenses Operating income