INCOME STATEMENT

NOTE NOTE 1
1 NET SALES 41 GROSS SALES
2 COSTS OF GOOD SOLD (12) SALES RETURN
GROSS INCOME 29 SALES DISCOUNT
OPERATING EXPENSE (5) reverse NET SALES
OPERATING INCOME 24
INTEREST EXPENSE (2) reverse
INCOME BEFORE TAX 22
TAX EXPENSE (4) reverse
NET INCOME 18
 NOTE 2
50 direct BEGINNING INVENTORY 20 reverse
(5) reverse PURCHASE 8 reverse
(4) reverse FREIGHT IN 4 reverse
41 PURCHASE DISCOUNT (3) direct
PURCHASE RETURN (2) direct
TOTAL GOODS AVAILABLE FOR SALE 27
ENDING INVENTORY (15) direct
COSTS OF GOOD SOLD 12