Gadgets and Widgets INC Income Statement Revenues 250000 200000 240000 280000 400000 Cost of Goods Sold 120000 100000 135000 140000 200000 Gross Profit 130000 100000 105000 140000 200000 ---------- Rent 11000 12000 12000 Depreciation 12000 14000 13000 12000 15000 Utilities 10000 11000 General Expenses 10000 19000 30000 20000 21000 Advertising 18000 10000 20000 20000 30000 ---------- Total Costs 56000 61000 83500 74000 89000 Operating Profit 74000 39000 21500 66000 111000 ---------- Interest Expense 15000 18000 25000 25000 18000 Taxable Profit 59000 21000 -3500 41000 93000 ---------- Income Tax 14000 19000 After Tax Profit 45000 17000 -3500 36000 74000 Dividends ---------- Retained Earnings 45000 17000 -3500 36000 74000