FEDERER SPORTS APPAREL Income Statement For the Years Ended December 31 2022 2021 Amount Amount Net sales Cost of goods sold Gross profit Operating expenses Depreciation expense Inventory write-down $ 18,000,000 100.0 $ 14,700,000 13,500,000 70.2 6,526,800 . 4,500,000 29.8 8,173,200 1,386,000 8.5 1,014,300 810,000 5.3 837,900 54,000 1.1 0 Loss (litigation) 1,296,000 8.0 235,200 Income before tax 954,000 6.9 6,085,800 Income tax expense 288,000 2.4 1,778,700 Net income 666,000 4.5 $ 4,307,100