The Hewitt News Agency Business had a fire and lost some of the accounting records it needed to prepare its 20X3 income statement. Dave Hewitt, the owner, has been able to determine that his capital in the business was \(\$ 38400\) at the beginning of \(20 \mathrm{X} 3\) and was \(\$ 39600\) at the end of 20X3. During 20X3 he withdrew \(\$ 16800\) from the business. Dave has also been able to remember or determine the following information for 20X3.

a Cash service revenues were three times the amount of net income; credit service revenues were 40 per cent of cash service revenues.

b Rent expense was \(\$ 600\) per month.

c The business has one employee, who was paid a salary of \(\$ 24000\) plus 20 per cent of the service revenues.

d The supplies expense was 15 per cent of the total expenses.

e The utilities expense was \(\$ 120\) per month for the first nine months of the year and \(\$ 240\) per month during the remaining months of the year due to the cold winter.

Dave also knows that the business owns some office equipment, but he cannot remember the cost or the amount of depreciation expense.

Required:

Using the above information, prepare Hewitt News Agency 20X3 income statement and calculate its profit margin. Show supporting calculations.