At December $31,$ The Gift Horse had the following information:

Sales Revenue: $$660,000$

Cost of Goods Sold: $$339,500$

Operating Expenses: $$240,500$

Income tax expense at the rate of $35\%$ of income before tax.

Requirement $1.$ Prepare The Gift Horse's income statement for $2016.$ Show totals for the gross profit and income before tax.

The Gift Horse

Income Statement

Year Ended December $31,2016$

Net income