Home Entertainment, a retailer of CDs and DVSs provided the following

information for the month of June.

Sales $150000
Selling expenses $40000
Administrative expenses $25000
Merchandise inventory beginning $12000
balance
Merchandise inventory ending $22000
balance
Merchandise purchases $90000
Prepare Income Statement.

INCOME STATEMENT FOR HOME ENTERTAINMENT

FOR THE MONTH OF JUNE
Sales $150000
Cost of goods sold
Beginning balance 12000
Purchases 90000
Closing balance (22000)
Total cost of goods sold (80000)
GROSS PROFIT $70000
Operating expenses
Selling expenses 40000
Administrative expenses 25000 (65000)
NET INCOME $ 5000