Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values.

In the correct format, prepare the income statement using the following information:

Calculate the profit margin, return on investment, and residual income. Assume an investment base of $100,000 and 6% cost of capital.

Prepare a short response to accompany the income statement that explains why uncontrollable costs are included in the income statement.

Pretax Income	?
Gross Profit	?
Allocated Costs (Uncontrollable)	$2,035
Labor Expense	41,580
Sales	189,000
Research and development (uncontrollable)	315
Depreciation expense	17,000
Net income/loss	?
Cost of goods sold	119,070
Selling expense	1,250
Total expenses	?
Marketing costs (uncontrollable)	790
Administrative expenses	690
Income tax expense (21% of pretax income)	?
Other Expenses	320