The CFO for Fin Tackle Company, a manufacturer of fine fishing supplies has provided you the following information from his company records. 

From the information presented prepare a properly formatted, multi-step Income Statement (i.e. showing intermediate profit lines Gross Profit, EBITDA, NOI, EBIT, EBT, and NI, as necessary). Per Share presentation of income data is not being requested.

Balance sheet account information is as of the close of business for December 31, 2006 unless otherwise indicated. Income statement information is applicable for the entire calendar year 2006 unless otherwise indicated. The company’s income tax rate is 40%. The company did not purchase or dispose any depreciable long-term assets. (Watch out –you may have more information than is needed to complete this problem). 

Sales/Revenues ....................... $500,000

Property Tax Expense ..................... $ 80,000

Cash ............................ $ 10,000

Selling Expenses ........................ $ 20,000

Unearned Revenues ...................... $ 15,000

Prepaid Insurance ...................... $ 10,000

General and Administrative Expenses .............. $ 15,000

Purchase of Goods for sale ................... $ 75,000

Inventory available for sale as of 1/1/2006 ............$ 100,000

Inventory available for sale as of 12/31/2006 ........... $ 95,000

Accum. Depreciation on Plant, Property, Equipment (as of 1/1/06) ... $120,000

Accum. Depreciation on Plant, Property, Equipment (as of 12/31/06) .. $150,000

Plant, Property, Equipment .................. $500,000

Long-term debt ........................ $ 50,000

Dividends declared and paid to shareholders ........... $ 40,000

Dividend Income ...................... $ 45,000

Interest Income ....................... $ 3,000

Interest Expense ........................ $ 2,000

Net Accounts Receivables .................... $ 15,000

Retained Earnings ........................ $ 60,000

Infrequent loss associated with a weather event ............. $ 3,000

Accounts Payable ....................... $ 15,000

Bad Debt Expense ...................... $ 5,000