Use your knowledge of income statements to fill in the missing items.

Sales  $                                                    = Gross profit + COGS

COGS ………………………….       575,000

Gross profit ………………… $1,600,000

G&A expense …………………   200,000

Sales & Mkting expense found can be determined after operating income is

Depreciation …………………….  50,000

Operating income                              = EBT + Interest

Interest ………………………..     100,000

Income before taxes                          EBT(1 – .30) = $700,000; EBT = $1,000,000

Income taxes (30%)                                 

Net income ………………    $    700,000