ERS Inc. maintains and repairs office equipment. ERS had an average of 10,000 shares of common stock outstanding for the year. The following income statement account balances are available for ERS at the end of 2019.

Required:
1. Prepare a single-step income statement for ERS for 2019.
2. Compute net profit margin for ERS. If ERS is able to increase its service revenue by $100,000, what should be the effect on future income?
3. Assume that ERS net profit margin was 8.5% for 2018. As an investor, what conclusions might you draw about ERS' future profitability?

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Advertising expense Depreciation expense (on service van) Income taxes expense Insurance expense Interest ex pense Rent expense Salaries expense (for administrative personnel) Service revenue Supplies expense Utilities ex pense Wages expense (for service technicians) $24,200 $195,600 933,800 66,400 26,100 16,250 15,150 11,900 10,100 58,400 448,300