1 PROBLEM 3-2 2 WORKING WITH INCOME STATEMENT Prepare an income statement and a common-sized income statement from the 4 following information. 6 DATA 7 Sales 8 Cost of goods sold 9 General & administrative expenses 10 Depreciation expenses 11 Interest expense 12 Income taxes 13 14 SOLUTION 15 Income Statement and Common-Sized Income Statement: 16 Sales 17 Cost of goods sold 18 Gross profits 19 General & administrative expenses 20 Depreciation expense 21 Total operating expense 22 Operating income ( 23 Interest expense 24 Earnings before taxes 25 Taxes (40% 26 Net income 27 28Requirements: S525,000 200,000 62,000 8,000 12,000 97,200