Income Statement

Column 1

Column 2

Sales

600,000

Cost of goods sold (Cost of sales)

372,000

Gross profit

228,000

Operating expenses

   Rent expense

31,200

   Salaries expense

40,800

   Supplies expense

25,200

   Insurance expense

13,800

   Depreciation expense

12,600

   Advertising expense

14,400

   Total operating expenses

138,000

Operating income

90,000

Non-operating income and expenses

   Interest income

30,000

   Interest expense

24,000

   Total non-operating income

6,000

Income before income taxes

96,000

   Income taxes expense (Tax rate is 30%)

28,800

Net income

67,200

Average number of common shares outstanding

100,000

Earnings per Share

0.672