Metro Department Store is located in midtown Metropolis. During the past several years, net income has been declining because of suburban shopping centers. At the end of the

Analysis reveals the following additional data:
1. Salaries expense is \(70 \%\) selling and \(30 \%\) administrative.
2. Insurance expense is \(50 \%\) selling and \(50 \%\) administrative.
3. Merchandise inventory at November 30,1998 , is \(\$ 36,200\).
4. Rent expense, utilities expense, and property tax expense are administrative expenses

\section*{Instructions}
Prepare an income statement for the year ended November 30, 1998.

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Accounts Payable Accounts Receivable Accumulated Depreciation-Delivery Equipment Accumulated Depreciation-Store Equipment Cash $ 37,310 11,770 19,680 41,800 8,000 Delivery Expense 8,200 Delivery Equipment 57,000 Depreciation Expense- Delivery Equipment 4,000 Depreciation Expense-Store Equipment 9,500 Freight-in 5,060 Common Stock 70,000 Retained Earnings 17,200 Dividends Insurance Expense Merchandise Inventory Notes Payable 12,000 9,000 34,360 46,000 Prepaid Insurance 4,500 Property Tax Expense 3,500 Purchases 640,000 Purchase Discounts 7,000 Purchase Returns and Allowances 3,000 Rent Expense 19,000 Salaries Expense 120,000 Sales 860,000 Sales Commissions Expense 14,000 Sales Commissions Payable 6,000 Sales Returns and Allowances 10,000 Store Equipment 125,000 Property Taxes Payable 3,500 Utilities Expense 10,600