2018 $ 1,450 850 Pamplin Inc. Income Statement for Years Ending 12/31/2017 and 12/31/2018 2017 Sales* $ 1,200 Cost of goods sold 700 Gross profit $ 500 Operating expenses $ 30 Depreciation expense 220 Operating profits $ 250 Interest expense 50 Profit before taxes $ 200 Taxes (21%) 42 Net income 158 * 15% of sales are cash sales, with the remaining 85% being credit sales. $ 600 $ 40 200 $360 64 $ 296 62 234 2018 $ 1,450 850 Pamplin Inc. Income Statement for Years Ending 12/31/2017 and 12/31/2018 2017 Sales* $ 1,200 Cost of goods sold 700 Gross profit $ 500 Operating expenses $ 30 Depreciation expense 220 Operating profits $ 250 Interest expense 50 Profit before taxes $ 200 Taxes (21%) 42 Net income 158 * 15% of sales are cash sales, with the remaining 85% being credit sales. $ 600 $ 40 200 $360 64 $ 296 62 234