Reference no: EM13518270

In 2003, Burghoff, Inc. (a hardware retail company) sold 10,000 units of its product at an average price of $400 per unit. The company reported estimated Returns and allowances in 2003 of $200,000. Burghoff actually purchased 11,000 units of its product from its manufacturer in 2003 at an average cost of $300 per unit. Burghoff began 2003 with 900 units of its product in inventory (carried at an average cost of $300 per unit). Operating expenses (excluding depreciation) for Burghoff, Inc. in 2003 were $400,000 and depreciation expense was $100,000. Burghoff had $2,000,000 in debt outstanding throughout all of 2003. This debt carried an average interest rate of 10 percent. Finally, Burghoff's tax rate was 40 percent.

Burghoff's fiscal year runs from January 1 through December 31. Given this information, construct Burghoff's 2003 multi-step income statement.