Use the following information to prepare an income statement for Fairchild Corporation for the year ended December 31, 2012. You should show separate classifications for revenues, cost of goods sold, gross margin, selling expenses, general and administrative expenses, operating income, other revenues and expenses, income before income taxes, income taxes, and net income.
Sales Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,280
Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,000
Interest Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400
Office Supplies Expense (general and administrative) . . . . . . . . . . . . . . . . . . 400
Utilities Expense (general and administrative). . . . . . . . . . . . . . . . . . . . . . . . . 3,980
Office Salaries Expense (general and administrative) . . . . . . . . . . . . . . . . . . . 12,064
Miscellaneous Selling Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 460
Insurance Expense (selling) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,160
Advertising Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,922
Sales Salaries Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,088
Sales Discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,644
Interest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,170
Miscellaneous General and Administrative Expenses . . . . . . . . . . . . . . . . . . . 620
Insurance Expense (general and administrative) . . . . . . . . . . . . . . . . . . . . . . . 600
Payroll Tax Expense (general and administrative) . . . . . . . . . . . . . . . . . . . . . . 3,600
Store Supplies Expense (selling) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800
Delivery Expense (selling). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,198
Inventory, January 1, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79,400
Sales Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395,472
Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262,610
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230,560
Purchases Discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,050
Inventory, December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,300
Average number of shares of stock outstanding . . . . . . . . . . . . . . . . . . . . . . . 10,000