Jared Tustin is the sole proprietor of Pretty Pets, a business specializing in t

Question

Jared Tustin is the sole proprietor of Pretty Pets, a business specializing in the sale of high-end pet gifts and accessories. PrettyPets sales totalated $1,125,000 during the most recent year. During the year, the company spent $58,000 on expenses relating to website maintenance, 32,500 on marketing, and $28,500 on wrapping, boxing, and shipping the goods to customers. Pretty Pets also spent $636,000 on inventory purchases and an additional $22,000 on freight in charges. The company started the year with $18,000 of inventory on hand and ended with $16,000 of inventory. Prepare Pretty's pets income statement for the recent years. Please provide the answer in Exel sheet.

Explanation / Answer

Pretty's pets income statement $ $ Sales Revenue   (A )            1,125,000 Less: Cost of goods sold; Beginnig inventory                      18,000 Add: purchases of inventory                    636,000 Add: Freight charges                      22,000 Less: Ending inventory                    (16,000) Cost of goods sold ( B )                660,000 Gross Income ( A ) - ( B )                465,000 Less: Operating expenses; website maintenance                      58,000 marketing                      32,500 wrapping                      28,500 Total operating expenses              (119,000) Net income                346,000

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