Chapter 2, Problem 2.11SE

Prepare a retailer’s income statement (Learning Objective 5)

Salon Hair is a retail chain specializing in salon-quality hair-care products. During the year, Salon Hair had sales of $38,850,000. The company began the year with $3,500,000 of merchandise inventory and ended the year with $4,445,000 of inventory. During the year. Salon Hair purchased $23,975,000 of merchandise inventory. The company’s selling, general, and administrative expenses totaled $7,100,000 for the year. Prepare Salon Hair’s income statement for the year.