Cost flows in a merchandising firm. MegaLo Mart provides the following information relating to its most recent year of operations. MegaLo Mart charges off the entire cost of transportation in to the...

Cost flows in a merchandising firm. MegaLo Mart provides the following information relating to its most recent year of operations. MegaLo Mart charges off the entire cost of transportation in to the income statement for the period.

Revenues $14,568,800

Beginning inventory, 1/1 245,600

Ending inventory, 12/31 260,400

Purchases 10,950,325

Transportation in 102,500

Sales commissions 437,064

Store rent 1,435,000

Store utilities 134,675

Other administration 879,345

Required:

Complete a GAAP income statement to determine MegaLo Mart’s profit before taxes.