ESSAY. Write your answer in the space provided or on a separate sheet of paper. 1) Prepare an income statement using the information given below. Make sure to identify gross profit, operating income, and net income. Inventories Cost of Goods Sold Administrative Expenses Accumulated Depreciation Sales Depreciation Expense Selling Expenses Common Stock Dividends Interest Expense Corporate Tax Rate Solution: $50,000 $250,000 Solution: $50,000 $150,000 $600,000 $25,000 $150,000 $8,000 $8,000 40% 2) Given the information below, calculate the company's cash balance at the end of the year. Cash Balance at Beginning of Year Activity During the Year Increase in Accounts Payable Decrease in Accounts Receivable Depreciation Expense Net Income Purchase of Fixed Assets Sales of Common Stock Decrease in Notes Payable Dividends Paid $80,000 $60,000 $40,000 $500,000 $2,000,000 $800,000 $100,000 $85,000 $15,000 () 2 Enter

KSSAV. Write ysur answer in the space previded er et a sparate stent of paper. opersting income, and nut thoome