Wheatley International Income Statement FY 201X REVENUES Net Sales COST OF GOODS SOLD Beginning Inventory Merchandise Purchased (Add) + Cost of Goods Available for Sale Less: Ending Inventory (Subtract) Cost of Goods Sold $ $ GROSS PROFIT (GROSS MARGIN) (Nets sales minus COGS) $ OPERATING EXPENSES Selling Expenses Salaries $ Advertising As the accountant for Wheatley International, it is your job to prepare the company's income statement. Use the accounts listed below. Advertising Total Selling Expenses $ General Expenses Insurance Interest Expense Rent Utilities Total General Expenses $ Total Operating Expenses (Add selling \& general) $ NET PROFIT (INCOME) BEFORE TAXES $ Less: Income Tax Expenses on Net Profit (25\% tax rate) \$ NET INCOME (PROFIT) AFTER TAXES $ For the income statement, you subtract cost of goods sold from net sales (revenue). Then you subtract expenses to get gross income. From that, you subtract the income tax of 25% to get net income