Village Hardware is a retail store selling hardware, small appliances, and sporting goods. The business follows a policy of selling a merchandise at exactly twice the amount of its cost to the store and uses a periodic inventory system. At year end the following information was taken from the accounting records.

Net Sales.................... $580,000

Inventory January 1. 58,000 Purchases 297,250

Prepare a partial Income statement showing the partial computation of the gross profit for the year