SANGSTER RETAIL SALES INC.
(in 000s of dollars)
Gross income (profit) $543
Net income before tax 240
Selling expenses 160
Ending inventory 475
Net sales 2,125
Beginning inventory 393
General and administrative expenses 143
Assignment
Different income statement items of Sangster Retail Sales Inc. are listed above in random order for the three-month period ending March 31, 2019. Prepare an income statement for the period ending March 31, 2019, for Sangster Retail Sales Inc. Assume the income tax rate is 25 per cent. Note: To complete this exercise, the following will have to be calculated: (a) cost of goods sold, (b) purchases and (c) net income after tax.