A skeleton of Landmark Mills’ income statement appears as follows (amounts in thousands):

Income Statement

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,200

Cost of goods sold . . . . . . . . . . . . . . . . . . (a)

Selling and admin expenses . . . . . . . . . . . 1,830

Interest expense . . . . . . . . . . . . . . . . . . . . (b)

Other expenses . . . . . . . . . . . . . . . . . . . . . 150

Income before taxes . . . . . . . . . . . . . . . . . $ 1,325

Income tax expense . . . . . . . . . . . . . . . . . (c)

Net income . . . . . . . . . . . . . . . . . . . . . . . . (d)

Requirement

1. Use the following ratio data to complete Landmark Mills’ income statement:

a. Inventory turnover was 3.50 (beginning inventory was $850; ending inventory was $810).

b. Rate of return on net sales is 0.11.