Rossi,IncSells Plasticware Prepare an Income Statement for Rossi,Inc

Essay

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