A Partial Income Statement for a Company's Most Recent Fiscal

Essay

A partial income statement for a company's most recent fiscal year follows: $\begin{array} { | l | l | } \hline \text { Sales } & \$ 800,000 \\\hline \text { Inventory, January 1 } & \$ 420,000 \\\hline \text { Add purchases } & ( \mathrm { a } )\underline{\quad\quad} \\\hline \text { Goods available for sale } & \text { (b) } \underline{\quad\quad} \\\hline \text { Inventory, December } 31 & 470,000 \\\hline \text { Cost of goods sold } & \text { (c) }\underline{\quad\quad} \\\hline \text { Gross margin } & 250,000 \\\hline \text { Deduct expenses: } & \\\hline \text { Selling } & \text { (d) }\underline{\quad\quad} \\\hline \text { Administrative } & \text { (e) } \underline{\quad\quad}\\\hline \text { Income before taxes } & \text { (f) }\underline{\quad\quad} \\\hline \text { Income taxes } & \text { (g) } \underline{\quad\quad}\\\hline \text { Net income } & \text { (h) }\underline{\quad\quad} \\\hline \text { Earnings per share } ( 5,000 \text { shares outstanding) } & \$ 4.20 \\\hline\end{array}$ Additional data:
Selling expenses are 20 percent of sales, administrative expenses are 10 percent of cost of goods sold; the income tax rate is 40 percent.
Required:
Supply dollar amounts for blanks a through h.