The cost accountant for Sun & Surf Apparel Shop has compiled the following information for last year’s operations:
Administrative costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 146,400
Merchandise inventory, January 1 . . . . . . . . . . . . . . . . . . . . 26,000
Merchandise inventory, December 31 . . . . . . . . . . . . . . . . . 25,000
Merchandise purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,22,000
Sales commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,700
Sales revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,868,000
Store rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,800
Store utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,460
Transportation-in costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,240

Required
Prepare an income statement with a supporting cost of goods sold statement.