Applied Activity # 1 Interest expense Earnings before income tax Income tax expense Net income 10% Marks Income Statement For the year ended 2021 Sales revenue Cost-of-goods-sold expense Gross margin Selling and administrative expenses Earnings before interest and income tax Cash Accounts receivable Inventories Prepaid expenses Total current assets Property, plant, and equipment Accumulated depreciation Cost less accumulated depreciation Total assets Liabilities and Owners' Equity $39,661,250 $24,960,750 $14,700,500 $11,466,135 $3,234,365 $ 795,000 $ 2,439,365 $853,778 $1,585,587 2021 $ 2,345,675 $ 3,813,582 $ 5,760,173 $822,899 $12,742,329 $20,857,500 ($ 6,785,250) $14,072,250 $26,814,579 2020 $ 2,098,538 $ 3,467,332 $ 4,661,423 $ 770,024 $10,997,317 $18,804,030 ($ 6,884,100) $11,919,930 $22,917,247 2%