In 2012, a firms revenue is $90,000, cost of sales is $40,000, rent is $10,000, depreciation is

Question:

In 2012, a firm’s revenue is $90,000, cost of sales is $40,000, rent is $10,000, depreciation is $2,000, and interest paid is $2,000. Its tax rate is 35 percent.
a. Construct an income statement based on this information.
b. If the company pays 30 percent of its net income as dividends, what is the increase in retained earnings for 2012?