Income statement data for Cascade Images Inc. for the years ended December 31, 20Y5 and 20Y4, are as follows: 20Y5 20Y4 Sales $500,000 $ 400,000 Cost of goods sold (320,000) (250,000) Gross profit $ 180,000 $ 150,000 Selling expenses $ (35,000) $ (30,000) Administrative expenses (25,000) (25,000) Total operating expenses $ (60,000) $(55,000) Income before income tax $ 120,000 $ 95,000 Income tax expenses (45,000) (40,000) Net income $ 75,000 $ 55,000