Question: 1. Prepare an income statement using the information below. Make sure to identify gross profit, operating income, net income and addition to retained earnings. (15

1. Prepare an income statement using the information below. Make sure to identify gross profit, operating income, net income and addition to retained earnings. (15 POINTS) Inventories $ 50,000 Cost of Goods Sold 2,000,000 Administrative Expenses 40,000 Accumulated Depreciation 150,000 Sales 3,500,000 Depreciation Expense 15,000 Selling Expenses 100,000 Common Stock Dividends 8,000 Interest Expense 15,000 Corporate Tax Rate 30%

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