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

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%