Selected accounts from the adjusted trial balance for Helen's Toy Shop for the end of the accounting year March 31, 20x1, are shown below.

The inventory for Helen's Toy Shop was 76,400 at the beginning of the year and 58,800 at the end of the year.

REQUIRED 1. Using the information given, prepare an income statement for Helen's Toy Shop. Store Salaries Expense; Advertising Expense; Store Supplies Expense; and Depreciation Expense, Store Equipment are selling expenses. The other expenses, except Income Taxes, are general and administrative expenses.
2. Based on your knowledge at this point in the course, how would you use the income statement for Helen's Toy Shup to evaluate the company's profitability?

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Helen's Toy Shop Partial Adjusted Trial Balance March 31, 20x1 Sales 330,000 Sales Returns and Allowances. 4,000 Purchases 140,400 Purchases Returns and Allowances 5,200 Freight In 4,600 Store Salaries Expense 65,250 Office Salaries Expense 25,750 Advertising Expense Rent Expense Insurance Expense Electricity Expense 48,600 4,800 2,400 3,120 Store Supplies Expense Office Supplies Expense Depreciation Expense, Store Equipment 5,760 2,350 2,100 Depreciation Expense, Office Equipment Income Taxes 1,600 2,000