Ahmad is The CEO of Mr.Pizza, who has just completed his

first full year in business. During the year, Ahmad billed

$420,000 for delivery services. Ahmad has a total of 11

employees (10 waiters and a chef). In addition to

Ahmad's monthly salary of $5,000, Ahmad paid annual

salaries of $12,100 and $10,000 to each of the waiters and

the chef, respectively. Employment benefit-cost for

Ahmad and his employees totaled $42,600 for the year.

Mr.Pizza expenses, including office supplies, totaled

$12,400 for the year. In addition, Ahmad spent $22,000

during the year on tax-deductible travel and

entertainment associated with client visits and new

business development. Lease payments for the rented

office space were $2,800 per month. Depreciation

f

expense on the office furniture and delivery trucks was

$16,300 for the year. During the year, Ahmad paid interest

of $18,000 on the $150,000 borrowed to start the business.

The company was subject to an average tax rate of 40%

during 2019. Prepare an income statement for Mr. Pizza

for the year ended December 31, 2019.

Sales Revenue Choose... - Tax Rate Choose... - Net Operating before taxes Choose... - Ahmad's annual salary Choose... - Earnings before Taxes > Choose... Employees salaries Choose... Tax Liability Choose... Interest Expense Choose... Operating Profits. Choose... - Net Income