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 a n 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.)