Simons Company Sells Plastic Ware Prepare an Income Statement for Simons Company, a Merchandiser, for Operating

Essay

Simons Company sells plastic ware. The following information summarizes Simons' operating activities for 2015:
$$\begin{array} { | l | r | } \hline \text { Utilities Expense } & \$ 65,000 \\\hline \text { Rent Expense } & 10,000 \\\hline \text { Sales Commissions Expense } & 32,500 \\\hline \text { Purchases of Merchandise } & 260,000 \\\hline \text { Inventory on January 1, 2015 } & 65,000 \\\hline \text { Inventory on December 31, 2015 } & 97,500 \\\hline \text { Sales Revenue } & 650,000 \\\hline\end{array}$$ Prepare an income statement for Simons Company, a merchandiser, for the year ended December 31, 2015 using the format below:
$$\begin{array} { | l | l | l | } \hline \text { Sales Revenue } &\quad\quad\quad\quad &\quad\quad\quad\quad \\\hline \text { Cost of Goods Sold } & & \\\hline \text { Beginning Inventory } & & \\\hline \text { Purchases } & & \\\hline \text { Cost of Goods Available for Sale } & & \\\hline \text { Ending Inventory } & & \\\hline \text { Cost of Goods Sold } & & \\\hline \text { Gross Profit } & & \\\hline \text { Selling Expenses } & & \\\hline \text { Sales Commissions Expense } & & \\\hline \text { Administrative Expenses } & & \\\hline \text { Rent Expense } & & \\\hline \text { Utilities Expense } & & \\\hline \text { Total Operating Expenses } & & \\\hline \text { Operating Income } & & \\\hline\end{array}$$