Excellent Company Sells Accounting Textbooks Required: Prepare Excellent Company's Income Statement for the Year Ended

Essay

Excellent Company sells accounting textbooks. The following information summarizes Excellent's operating activities for 2015:
$$\begin{array} { | l | r | } \hline \text { Merchandise Inventory, January 1, 2015 } & \$ 10,000 \\\hline \text { Merchandise Inventory, December } 31,2015 & 7,000 \\\hline \text { Purchases } & 95,000 \\\hline \text { Selling and Administrative Expenses } & 65,000 \\\hline \text { Sales Revenue } & 180,000 \\\hline\end{array}$$ Required: Prepare Excellent Company's income statement for the year ended December 31, 2015.