a P 8) Given the information below, construct an income statement. What are the firm's gross profits, operating income, and net income? Which expense is a non-cash expense? (The solution to this problem is given a few pages later.) Interest expense $10,000 Sales $400,000 Cost of Goods Sold $160,000 Stock Dividends $5,000 Selling expenses $70,000 Income Taxes $20,000 Administrative expenses $50,000 Depreciation expense $20,000 9) Given the information below, prepare the balance sheet for this hypothetical company Gross fixed assets $75.000 Accounts receivables $50,000 Cash $10,000 Long-term notes $5,000 Other Assets $15,000 Mortgage $20,000 Accounts payable $40,000 Common stock $100,000 Retained Earnings $15.000 Inventories $70,000 Accumulated Depreciation $20,000 Short-term notes $20,000 Income taxes $12