KitCO. Is a wholesaler of oak office furniture. It is an LLC company and uses the parodic inventory system to account for its inventory. On 12/31/22 the end of the company's fiscal year, the ending inventory of oak furniture was $5,450,000. The company made all of the required closing entries on that date to start the new fiscal year.

During the new fiscal year starting on 1/1/23, the company had sales of $28,500,000 with $135,000 in Sales Returns and Allowances. The company purchased $13,250,000 worth of inventory during the year and had $125,000 in Purchase Returns and Allowances. On 12/31/23 the end of the current fiscal year, an inventory count of the ending inventory of the oak office furniture was made and it was found that the company had $4,875,000 worth of the oak office furniture in its ending inventory.

Complete the income statement down to its Gross Profit using the information above.

Answer rating: 100% (QA)

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