Use the following information to prepare an income statement for Fairchild Corporation for the year ended December 31, 2003. You should show separate classifications for revenues, cost of goods sold, gross margin, selling expenses, general and administrative expenses, operating income, other revenues and expenses, income before income taxes, income taxes, and net income. (HINT: Net income is $27,276.)

Sales Returns

4,280

Income Taxes

26,000

Interest Revenue

2,400

Office Supplies Expense (General and Administrative)

400

Utilities Expense (General and Administrative).

$3,980

Office Salaries Expense (General and Administrative)

$12,064

Miscellaneous Selling Expenses

460

Insurance Expense (Selling).

1,160

Advertising Expense

6,922

Sales Salaries Expense

40,088

Sales Discounts

3,644

Interest Expense

1,170

Miscellaneous General and Administrative Expenses

620

Insurance Expense (General and Administrative)

$600

Payroll Tax Expense (General and Administrative)

3,600

Store Supplies Expense (Selling)

800

Delivery Expense (Selling)

2,198

Inventory, January 1, 2003

79,400

Sales Revenue.

395,472

Average number of shares of stock outstanding

10,000

Cost of Goods Sold

$262,610

Purchases

230,560

Purchases Discounts

3,050

Inventory, December 31, 2003

44,300