Problem - Marwick's Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $1,494 each from the manufacturer. Marwick's Pianos, Inc., sells the pianos to its customers at an average price of $2,600 each. The selling and administrative costs that the company incurs in a typical month are presented below:

Costs  Cost Formula  Selling:        Advertising  $949 per month       Sales salaries and commissions  $4,773 per month, plus 3% of sales       Delivery of pianos to customers  $59 per piano sold       Utilities  $637 per month       Depreciation of sales facilities  $5,034 per month  Administrative:        Executive salaries  $13,435 per month       Insurance  $697 per month       Clerical  $2,454 per month, plus $35 per piano sold       Depreciation of office equipment  $890 per month

Required:

1. Prepare an income statement for Marwick's Pianos, Inc., for August. Use the traditional format, with costs organized by function. (A "Net operating loss" should be entered as a negative number.)