At the end of Kane Department Store’s fiscal year on November 30, 2010, these accounts appeared in its adjusted trial balance.
Freight-in .................. $ 5,060
Merchandise Inventory (beginning) ........ 42,200
Purchases ................... 616,000
Purchase Discounts ............... 7,000
Purchase Returns and Allowances ......... 6,760
Sales .................... 904,000
Sales Returns and Allowances ......... 20,000
Additional facts:
1. Merchandise inventory on November 30, 2010, is $36,200.
2. Note that Kane Department Store uses a periodic system.

Instructions
Prepare an income statement through gross profit for the year ended November 30, 2010.