Drill Problem 13-14 LU 13-3 (2)] LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2014 and 2015 2015 2014 S 21,200 s 16,650 100 Gross sales Sales returns and allowances 800 Net sales Cost of merchandise (goods) sold Gross profit Operating expenses S20,400 S 11,450 8,400 S 8,950 S 8,150 Depreciation Selling and administrative Research Miscellaneous S 920 S 710 3,100 610 410 3,850 770 580 Total operating expenses S 6,120 S4,830 Income before interest and taxes Interest expense S 2,830 S 3,320 610 780 Income before taxes Provision for taxes S 2,050 S 2,710 1.084 820 Net income S 1,230 S 1,626