Presented below are selected ledger accounts of Woods Corporation at December 31, 2022.

Woods’s effective tax rate on all items is 30%. A physical inventory indicates that the ending inventory is $686,000.

Instructions

Prepare a 2022 income statement for Woods Corporation.

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Cash Salaries and wages expense $185,000 (sales) $284,000 Inventory (beginning) Salaries and wages expense 535,000 (office) 346,000 Sales revenue 4,175,000 Purchase returns 15,000 Unearned sales revenue 117,000 Sales returns and allowances 79,000 Purchases 2,786,000 Freight-in 72,000 Sales discounts 34,000 Accounts receivable 142,500 Purchase discounts 27,000 Sales commissions 83,000 Selling expenses Telephone and Internet expense 69,000 (sales) 17,000 Accounting and legal services Insurance expense (office) 33,000 Utilities expense (office) 24,000 Miscellaneous office expenses 32,000 8,000 Advertising expense 54,000 Rent revenue 240,000 Delivery expense 93,000 Loss on sale of division 60,000 Interest expense Depreciation expense (office equipment) 48,000 176,000 Share capital-ordinary ($10 par) Depreciation expense (sales equipment) 36,000 900,000