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Ch(6): Income Statement for Merchandise Business136Solution(a):Taba Super MarketMultiple-StepIncome StatementFor Year Ended Dec 31, 2015Sales229,400Less:Sales returns(15,400)= Net Sales214,000Less: Cost of Goods Sold:Beginning Inventory5,200Purchases162,700Less:Purchases Discount(2,700)= Net Purchases160,000+ Import Tax1,900= Cost of Purchases161,900= Cost of Goods Available for Sale167,100Less:Ending Inventory(9,400)= Cost of Goods Sold (157,700)= Gross Profit 56,300-Operating Expenses:Salaries Expenses15,600Electricity Expenses3,400Rent Expenses7,200Total Operating Expenses(26,200)Income from Operations30,100+Other Revenues and Gains:8,600Gain from Sales Machines-Other Expenses and Losses:2,800Interest Expenses= Net Income before tax35,900Income Tax (35,900%u00d75%)(1,795)Net Income (Profit)34,105