the income statement of rodriquez company 497512

RODRIQUEZ COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2012

Sales

$6,894,600

Cost of goods sold

Beginning inventory

$1,893,870

Purchases

4,375,530

Goods available for sale

6,269,400

Ending inventory

1,608,650

Cost of goods sold

4,660,750

Gross profit

2,233,850

Operating expenses

Selling expenses

440,640

Administrative expenses

703,840

1,144,480

Net income

$1,089,370

1.

Accounts receivable decreased $312,690 during the year.

2.

Prepaid expenses increased $178,550 during the year.

3.

Accounts payable to suppliers of merchandise decreased $281,970 during the year.

4.

Accrued expenses payable decreased $124,510 during the year.

5.

Administrative expenses include depreciation expense of $55,760.