Case Question 12-22 Pippin Piping Co. manufactures decorative fabric trims. The company's financial statements follow Pippin Piping Co. Comparative Income Statements For the Years Ended December 31 2016 2015 2014 Sales revenue Cost of goods sold Gross margin Operating expenses Operating income Other revenue $576,600 $523,000 $484,200 291,000 259,200 234,300 285,600 263,800 249,900 106,200 104,600 104,100 179,400 159,200 145,800 22,500 11,200 15,900 10,500 23,900 11,900 190,700 164,600 157,800 Income tax expense (40%) 76,280 65,840 63,120 $114,420 $98,760$94,680 Interest expense Income before income tax Net income