Question

Jared Tustin is the sole proprietor of Pretty Pets, a business specializing in the sale of high-end pet gifts and accessories. PrettyPets sales totalated $1,125,000 during the most recent year. During the year, the company spent $58,000 on expenses relating to website maintenance, 32,500 on marketing, and $28,500 on wrapping, boxing, and shipping the goods to customers. Pretty Pets also spent $636,000 on inventory purchases and an additional $22,000 on freight in charges. The company started the year with $18,000 of inventory on hand and ended with $16,000 of inventory. Prepare Pretty's pets income statement for the recent years. Please provide the answer in Exel sheet.

Answer 1

Pretty's pets income statement
	$	$
Sales Revenue   (A )		1,125,000
Less: Cost of goods sold;
Beginnig inventory	18,000
Add: purchases of inventory	636,000
Add: Freight charges	22,000
Less: Ending inventory	(16,000)
Cost of goods sold ( B )		660,000
Gross Income ( A ) - ( B )		465,000
Less: Operating expenses;
website maintenance	58,000
marketing	32,500
wrapping	28,500
Total operating expenses		(119,000)
Net income		346,000