Excellent Company Sells Accounting Textbooks -
Required: Prepare an Income Statement for the Year Ended

Essay

Excellent Company sells accounting textbooks. The following information summarizes Excellent's operating activities for 2012:
$$\begin{array} {| l | r |} \hline \text { Nerchendise inventory, Janury } 1,2012 & \$ 10,000 \\\hline \text { Nerchendise inventory, Decenber } 31,2012 & \$ 7,000 \\\hline \text { Purcheses } & \$ 95,000 \\\hline \text { Selling and Adrminitrative Expenses } & \$ 65,000 \\\hline \text { Sales Reverue } & \$ 180,000 \\\hline\end{array}$$
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Required: Prepare an income statement for the year ended December 31, 2012. Please use the format provided below:
$$\begin{array} { | l | l | l | } \hline \text { Sales revenue } &\quad\quad & \quad\quad\\\hline \text { Cost of goods sold } & & \\\hline \text { Beginning inventory } & & \\\hline \text { Purchases } & & \\\hline \text { Cost of goods available for sale } & & \\\hline \text { Ending inventory } & & \\\hline \text { Cost of goods sold } & & \\\hline \text { Gross profit } & & \\\hline \text { Selling and administrative expenses } & & \\\hline \text { Net income/(loss) } & & \\\hline\end{array}$$