Reference no: EM131815808

Question - Grope Corporation began operations at the start of 2012. During the year, it made cash and credit sales totaling $974,000 and collected $860,000 in cash from its customers. It purchased inventory costing $508,000, paid $25,000 for dividends and the cost of goods sold was $445,000. The corporation incurred the following expenses:

salary expense $180,000

interest expense $15,000

insurance expense $10,000

supplies expense $18,000

income tax expense $65,000

Required: Prepare an income statement showing revenues, expenses, pretax income, income tax expense, and net income for the year ended December 31, 2012.