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Submitted By IBRAHIM85
Words 14198
Pages 57
P2-3. LG 1: Income statement preparation a.

|Cathy Chen, CPA |
|Income Statement |
|for the Year Ended December 31, 2009 |
|Sales revenue | |$360,000 |
|Less: Operating expenses | | |
| Salaries |180,000 | |
| Employment taxes and benefits |34,600 | |
| Supplies |10,400 | |
| Travel & entertainment |17,000 | |
| Lease payment |32,400 | |
| Depreciation expense | 15,600 | |
| Total operating expense | | 290,000 |
|Operating profits | |$ 70,000 |
|Less: Interest expense | | 15,000 |
|Net profits before taxes | |$ 55,000 |
|Less: Taxes (30%) | | 16,500 |
|Net profits after taxes | |$ 38,500…...

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