Below are the income statement and balance sheet for XYz Company Income Statement SALES COST OF GOODS SOLD GROSS PROFIT SELLING & ADMINISTRATIVE EXPENSE DEPRECIATION EXPENSE R&D EXPENSE EARNINGS BEFORE INTEREST AND TAXES INTEREST EXPENSE EARNINGS BEFORE TAXES INCOME TAXES (@ 35%) NET INCOME 5 $1,000,000 $600,000 $400,000 = $52,000 $38,000 $283,000 $46,000 $237,000 $94800 S142.200 6 School of Business and Public Administration University of the District of Columbia