=+Comparative Income Statement For the Years Ended December 31, 2010 and 2009 2010 2009 Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $525,000 $420,000 Sales returns and allowances . . . . . . . . . . . . 25,000 20,000 _________ _________ Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . $500,000 $400,000 Cost of goods sold . . . . . . . . . . . . . . . . . . . . 280,000 220,000 _________ _________ Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . $220,000 $180,000 _________ _________ Selling expenses . . . . . . . . . . . . . . . . . . . . . $130,000 $ 80,000 Adminstrative expenses . . . . . . . . . . . . . . . . 65,000 56,000 _________ _________ Total operating expenses . . . . . . . . . . . . . . . $195,000 $136,000 _________ _________ Income from operations . . . . . . . . . . . . . . . . $ 25,000 $ 44,000 Other income . . . . . . . . . . . . . . . . . . . . . . . . 30,000 24,000 _________ _________ Income before income tax . . . . . . . . . . . . . . $ 55,000 $ 68,000 Income tax expense (benefit) . . . . . . . . . . . . 35,000 28,000 _________ _________ Net income (loss) . . . . . . . . . . . . . . . . . . . . . $ 20,000 $ 40,000 _________ _________ _________ _________ Instructions