At December 31, 2015, Ozzy Limited's general ledger contained the following summary data: Sales - $1,200,000

Operating expenses - 275,000

Cost of goods sold - 625,000

Retained earnings January 1, 2015 - 497,000

Additional information: 1. In 2015 dividends of $35,000 were declared on July 1 and December 31 respectively. The dividends were paid on August 10, 2015 and January 15, 2016 respectively. 2. The company's tax rate is 35%.

a) Calculate the gross profit, profit before taxes, and income tax expense.

b) Using the information in a), create an income statement for 2015 to calculate profit.

c) Create a statement of retained earnings for 2015

(include a heading section for each statement and "appropriate" formatting.)