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Income statement preparation On December 31, 2019, Cathy Chen, a seY-employed certifed public accountant (CPA), completed her first full year in business. During the year, she charged her clents $360,000 for her accounting sorvioes. She had tao employees, a boobkeeper and a cletical assistant, In addition to her monthly salary of $8,000, Ms. Chen paid annual salaries of $46,000 and $36,000 to the bookkeeper and the clerical assistant, respectively. Employment taves and benefif costs for Ms. Chen and her employees totaled $34,600 for the year. Expenses for office supplies, induding postage, totaled $10,400 for the year, In addition, Ms. Chen spent $17,000 during the year on tax-deductble travel and entortainment associated with client visits and new business development Lease payments lor the office space rented (a tax-deducbble expense) were $2,700 per month. Depreciation expense on the office fumiture and fotures was $15,600 for the year. During the year, Ms. Chen paid interes of $15,000 on the $120,000 borrowed to start the businoss She paid an average tax rate of 30% during 2019 a. Prepare an income statement for Cathy Chen, CPA, for the yeor ended December 31,2019 b. Evaluate her 2019 francal performance Total operating expense Operating profts (EEiT) 3 5 Completo the fregment of the income statemert for Cathy Chen below: (Seiect the carect account from the drop-down menu and round to the nearest dollar) Net protis before tanes 5 Complete the tragment of the income statement for Cathy Chen below: (Seiect the correct account from the drop-down nenu and round to the neavest dollar?) Net grofits ater tives 5. B. Evaluate her 2019015 fnancial performance. (Seiect the best answer below) A. In her frat year of busness, Cathy Chen dia not cover all her operasing expenses, which resuled in a net hoss of $55,600 on revenues of 5360,000 . Net profits afler taves b. Fvaluate her 2019015 financial performance. (Select the best andwer below.) A. Ih her firt year of busines5, Cathy Chen did not cover all her eperating expenses, which refulted in a net lass of 555,000 on rovenues of 5360,000 . 8. In hor first year of butiness, Cathy Chen did not cover all her opereting expenses, which reaulled in a net loss of 533 , S00 on revernues of 3360 , o00 C. In her first year of business, Cathy Chen covered al her operaing oxpentes and earned a net probt of 556,000 on revenues of 5360,000 0. In her first year of business, Cathy Chen covered al her cperaling expenses and earned a net proft of $38,500 on revences of $360,000