Based on the scenario, you will complete an Income Statement. Read the scenario below. Identify pertinent information and use it to fill in numbers on the income statement form. Not all information is necessary to complete the statement. Leave any unnecessary boxes empty. Please round all figures to whole dollars. You may need to use scratch paper.

Wally started a weekend widget stand on his landlords front lawn with a $2000 inheritance (owner investment). He relied on his brightly-colored stand, drive-by traffic, and word-of-mouth to attract customers. The stand has a market value of $500. Wally paid his landlord $15 up front for a year of lawn space and spent another $150 on the stand, which has a lifespan of four years. The city heard about his scheme and charged him $30 for a permit.

In his first year of business, Wally acquired 1000 widgets for $1.00 each and sold all but 50 of them at 80% markup. Due to a defect in some of the product, he discounted a total of $10.

Additional costs included $30.00 in UPS bills and $10.00 for 1000 bags. Sales tax amounted to $106. The Marginal Tax Rate (MTR) is 25%.

Based on the given Wallys Widgets scenario, fill in the numbers below. DO NOT use the dollar sign, numbers only. Make sure to include parentheses when necessary.

Wally's Widgets Income Statement For the year ended December 31, 20xx
Revenue
Gross Sales
Less: Sales returns and Discounts
Net Sales
Cost of Goods Sold
Beginning Inventory
Purchase of Widgets
Less: Ending Inventory
Less: Cost of Goods Sold
Gross Profit
Operating Expenses
Selling Expenses
Delivery Expenses
Advertising Expenses
Salaries
Miscellaneous Expenses
Sales Taxes Paid
Total Selling Expenses
General Admin. Expenses
Rent Expenses
Utilities Expenses
Insurance Expenses
Wages
Permits and Licenses
Depreciation Expenses
Total General and Admin. Expenses
Less: Total Operating Expenses
Income Before Taxes
Less: Income Taxes (@ 25%)
Net Income after Taxes