Harbor Freight Co. uses a perpetual inventory system. The following are its adjusted balances for the year ended December 31, 2026. The tax rate is 25%.
| Account | Amount |
|---|
| Sales Revenue | $640,000 |
| Sales Returns and Allowances | 15,000 |
| Sales Discounts | 5,000 |
| Cost of Goods Sold | 372,000 |
| Salaries and Wages Expense | 120,000 |
| Advertising Expense | 22,000 |
| Depreciation Expense | 18,000 |
| Rent Expense | 30,000 |
| Utilities Expense | 8,000 |
| Interest Expense | 6,000 |
Required: Prepare a multi-step income statement for the year ended December 31, 2026.