“Schneider owns Chris’ Pets, a small retail shop selling pet supplies. On December 31, 2016 the accounting records of Chris’ Pets showed the following:Inventory on December 31, 2016 $10,700Inventory on January 1, 2016 15,800Sales Revenue 54,000Utilities Expense for the shop 3,100Rent for the shop 4,600Sales Commissions 3,050Purchases of Merchandise Inventory 30,000Requirements1. Prepare an income statement for Chris’ Pets for the year ended December 31, 2016.2. Chris’ Pets sold 3,850 units. Determine the unit cost of the merchandise sold, rounded to the nearest cent.”,”Chris’ Pets Income StatementYear Ended December 31, 2016Revenue: Sales Revenue $54,000Cost of Goods Sold:Beginning Merchandise Inventory $15,800Purchases of Merchandise Inventory 30,000Cost of Goods Available for Sale 45,800Ending Merchandise Inventory (10,700)Cost of Goods Sold 35,100Gross Profit 18,900Selling and Administrative Expenses:Utilities Expense 3,100Rent Expense 4,600Sales Commissions Expense 3,050Total Selling and Administrative Expenses 10,750Operating Income (Loss) $8
150Requirement 2:$9.12″