Kelowna Plumbing Supplies

Schedule of Cost of Goods Sold

For the Year Ended December 31, 2016

Finished-goods inventory, opening $ 16,000

Add: Cost of goods manufactured 439,000
Cost of goods available for sale 455,000
Deduct: Finished-goods inventory, closing (10,000)
Cost of goods sold $ 445,000

Kelowna Plumbing Supplies

Income Statement
For the Year Ended December 31, 2016

Sales revenue $ 1,000,000

Less: Cost of goods sold (445,000)
Gross margin 555,000
Selling and administration expenses 186,000
Income before taxes 369,000
Less: Income tax expense (40%) (147,600)
Net income $ 221,400