C16 X v f A B C D E F G 7 Sales $525.000 8 Cost of goods sold 200.000 9 General and administrative expenses 62.000 10 Depreciation expenses 8.000 11 Interest expense 12,000 12 Income taxes 97,200 13 14 SOLUTION 15 Income Statement and Common-Sized Income Statement: 16 Sales 17 Cost of goods sold Gross profits 19 General and administrative expenses 20 Depreciation expense 21 Total operating expense 22 Operating income (EBIT) 23 Interest expense 24 Earnings before taxes 25 Taxes (40%) 26 Net income