- Prepare an Income statement with the information shown on the profitability ratio tab the years of 2006 & 2007.

- Consider that equipment depreciates linearly over a span of 5 years with a surplus value of $13,000.

- The firm is taxed at a 10% rate each year

2006 2007 395500 425109 85000 o 126720 13520 43890 50781 14521 16752 40020 35040 Profitability Ratios for Iron Works Inc In Millions $ Activity Sales Invetments in equipment (brand new) Production Wages Material Purchases Other Materials( Pain, tucstain, wires) Administrative Salaries Accounts payable Accounts Recievable Loan from bank Inventories Interest Expenses Building Rent Amortization Other Expenses/ water, electricity, phone) Cash in Bank Sale of Common Stocks 32215 26541 45001 40521 100000 0 75880 85612 10501 11526 6000 6500 6500 9500 16500 14500 35251 42511 12000 25000