Using the selected year-end account balances at December 31, 2011, for Handy General Store shown below, prepare a 2011 income statement. Show detail of net sales and cost of goods sold. The company uses the periodic inventory system. Beginning merchandise inventory was $14,000; ending merchandise inventory is $10,500.

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Account Name Debit Credit Sales Sales Returns and Allowances Purchases Purchases Returns and Allowances Freight-In Selling Expenses General and Administrative Expenses Income Taxes S154,500 $ 7,600 57,400 3,500 2,800 28,200 18,600 9,000