system. What would you recommend that Bastile do to fix the problems? EXERCISE 16.9 Preparing an Income Statement Using the Cost of Finished Goods Manufactured The Anthony Company, a sole proprietorship, reports the following information pertaining to its operating activities: During the year, the company purchased $40,000 of direct materials and incurred $21,000 of direct labor costs. Total manufacturing overhead costs for the year amounted to $18,000. Selling and administrative expenses amounted to $60,000, and the company's annual sales amounted to $250,000. a. Prepare Anthony's schedule of the cost of finished goods manufactured. b. Prepare Anthony's income statement (ignore income taxes)