Depreciation Equipment General expense Interest expense Inventories Land Long term debes Machinery Marketable securities Notes payable Operating expense Paid-ih capital in excess of par Preferred stock Preferred stock dividends Retained earnings Sales revenue Selling expense Taxes Vehicles 0 P3-3 Income statement preparation David Chan operates Speedy Delivery Service Company, a fleet of delivery trucks in a large metropolitan area, and has just completed his first full year in business. During the year, the company billed $420,000 for delivery services. David has a total of 11 employees (10 truck drivers and a clerical assistant). In addition $10,000 to each of the truck drivers and the derical assistant, respectively. Employment taxes and benefit costs for David and his employees totaled $42,600 for the year. Sundry expenses, including office supplies, totaled $12,400 for the year. In addition, David spent $22,000 during the year on tax deductible travel and entertainment associated with client visits and new business development. Lease payments for the rented office space (a tax-deductible expense) were $2,800 per month. Depreciation expense on the office furniture and delivery trucks was $16,300 for the year. During the year, David paid an interest of $18,000 on the $150,000 borrowed to start the business. The company was subject to an average tax rate of 40% during 2014. a. Prepare an income statement for Speedy Delivery Service Company for the year ended December 31, 2014. b. Evaluate the financial performance of the company in 2014. Depreciation Equipment General expense Interest expense Inventories Land Long term debes Machinery Marketable securities Notes payable Operating expense Paid-ih capital in excess of par Preferred stock Preferred stock dividends Retained earnings Sales revenue Selling expense Taxes Vehicles 0 P3-3 Income statement preparation David Chan operates Speedy Delivery Service Company, a fleet of delivery trucks in a large metropolitan area, and has just completed his first full year in business. During the year, the company billed $420,000 for delivery services. David has a total of 11 employees (10 truck drivers and a clerical assistant). In addition $10,000 to each of the truck drivers and the derical assistant, respectively. Employment taxes and benefit costs for David and his employees totaled $42,600 for the year. Sundry expenses, including office supplies, totaled $12,400 for the year. In addition, David spent $22,000 during the year on tax deductible travel and entertainment associated with client visits and new business development. Lease payments for the rented office space (a tax-deductible expense) were $2,800 per month. Depreciation expense on the office furniture and delivery trucks was $16,300 for the year. During the year, David paid an interest of $18,000 on the $150,000 borrowed to start the business. The company was subject to an average tax rate of 40% during 2014. a. Prepare an income statement for Speedy Delivery Service Company for the year ended December 31, 2014. b. Evaluate the financial performance of the company in 2014