Exercise 1-46 (Algorithmic) Income Statement ERS Inc, maintains and repairs office equipment. ERS had an average of 10,000 shares of common stock outstanding for the year. The following income statement account balances are available for ERS at the end of 2019. $24,120 Advertising expense 16,260 Depreciation expense (on service van) 15,150 Income taxes expense 10,100 Interest expense 58,400 Rent expense 11,900 Insurance expense Salaries expense (for administrative personnel) 195,600 Service revenue 934,000 Supplies expense 66,100 Utilities expense 26,100 Wages expense (for service technicians) 448,300 Required: 1. Prepare a single-step income statement for ERS for 2019, Note: For grouped values (e.g. revenues or expenses), enter individual amounts as positive values. If the total for the group is subtracted or a overall negative amount, enter using a minus sign. 1. Prepare a single-step income statement for ERS for 2019. Note: For grouped values (e.g. revenues or expenses), enter individual amounts as positive values. If the total for the group is subtracted or a overall negative amount, enter using a minus sign. ERS Inc. Income Statement For the Year Ended December 31, 2019 Revenues: Expenses: 9 111111 Total expenses 2. Conceptual Connection: Compute net profit margin for ERS. Round your answer to one decimal place. % IF ERS is able to increase its service revenue by $100,000, what should be the effect on future income? If ERS had an incremental increase in revenue of $100,000, based on the net profit margin computed, what is the additional potential profit? 3. Conceptual Connection: Assume that ERS net profit margin was 8.5% for 2018. As an investor, what conclusions might you draw about ERS' future profitability? declining profit margin implies that ERS is