P3–1 Reviewing basic financial statements The income statement for the year ended December 31, 2015, the balance sheets for December 31, 2015 and 2014, and the statement of retained earnings for the year ended December 31, 2015, for Technica, Inc., are given below and on the following page. Briefly discuss the form and informational content of each of these statements

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Technica, Inc., Income Statement for the Year Ended December 31, 2015 Sales revenue Less: Cost of goods sold Gross profits $600,000 460,000 $140,000 Less: Operating expenses General and administrative expenses Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes Earnings available for common stockholders $ 30,000 30,000 $ 60,000 $ 80,000 10,000 $ 70,000 27,100 $ 42,900 Earnings per share (EPS) $2.15