Wonderland Opticians is a retail store selling spectacles and other optical products. The business follows the policy of selling all merchandise at higher prices and uses a periodic inventory system. With the help of the given information prepare the partial income statement showing a computation of the gross profit of the year 2010. Sales=$400,000

Inventory January 1=40,000 Purchases=250,000 Sales discount=7,000 Sales returns and allowances=3,000 A physical count indicates merchandise costing $34,000 is on hand at December 31.