is the sole proprietor of Prestigious Pups, a business specializing in the sale of high-end pet gifts and accessories. Prestigious Pups' sales totaled $ 986 comma 000 during the most recent year. During the year, the company spent $ 58 comma 500 on expenses relating to website maintenance, $ 30 comma 500 on marketing, and $ 29 comma 100 on wrapping, boxing, and shipping the goods to customers. Prestigious Pups also spent $ 643 comma 000 on inventory purchases and an additional $ 19 comma 700 on freight-in charges. The company started the year with $ 16 comma 250 of inventory on hand and ended the year with $ 16 comma 800 of inventory. Prepare Prestigious Pups' income statement for the most recent year.

An income statement is one of the three important financial statements used for reporting a company's financial performance over a specific accounting period. The income statement focuses on the four key items - revenue, expenses, gains, and losses. It does not cover receipts (money received by the business) or the cash payments/disbursements (money paid by the business).

It follows the general structures:

Revenues (+)

Operating Revenue

Non-Operating Revenue

Total

Expenses (-)

Primary Activity Expenses

Secondary Activity Expenses

Total

Gains (+)

Losses (-)

Net income/loss

In this exercise:

sales totaled $ 986000

$58500 on expenses relating to website maintenance

$30500 on marketing

$29100 on wrapping, boxing, and shipping the goods to customers.

$643000 on inventory purchases

$19700 on freight-in charges.

started the year with $16250 inventory

ended the year with $ 16800 of inventory.

Revenues= 986000

Expenses (-)

Primary Activity Expenses:

Cost of goods sold= Initial inventory + purchase - ending inventory= $642450

wrapping, boxing, and shipping= $29100

Secondary Activity Expenses:

website maintenance=58500

marketing= $30500

freight-in charges= $19700

Total Expenses= $780250

Net income= $205750