15.CS.1-2. Skill Builder 3 Question Help Last year, John Smarter started a business selling and repairing bicycles. He is somewhat successful, but he is tired of working 60 hours a week. With borrowed funds, Smarter believes he will be able to expand to a larger store and then hire someone to help him. The banker asked Smarter for his most recent income statement and balance sheet. 1. Prepare an income statement and find net income after taxes. Gross Sales Returns Inventory on Jan. 1 Cost of Goods Purchased Freight Inventory on Dec. 31 $239,100 $3500 $53,100 $98,200 $2300 $48,400 Salaries and Wages Rent & Utilities Advertising Miscellaneous Expenses Income taxes $78,530 $11,300 $3200 $4800 $3400