Comparative financial statements for Blossom and Ayayai Ltd. are shown below. BLOSSOM AND AYAYAI LTD. Income Statement Year Ended December 31 2021 2020 Net sales $835,000 $820,000 Cost of goods sold 595,000 550,000 Gross profit 240,000 270,000 Operating expenses 154,000 150,000 Profit from operations 86,000 120,000 Other revenues and expenses Interest expense 30,000 20,000 Profit before income tax 56,000 100,000