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Gabi's Creations
Income Statement
For the Year Ended December 31, 2021
Net Sales Revenue		576,000
Cost of Goods Sold		272,000
Gross profit		304,000
Operating Expenses
Selling Expense	89,000
Administrative Expense	47,000
Total Operating expenses		136,000
Net Income		168,000

Kenady suggests that adding in higher-margin accessories to complement the custom cell cases, such as pop sockets could increase sales. A pop socket vendor can supply a minimum of 1,200 pop sockets for $5 each; Gabis Creations can then add design and sell them for $15. In order to market this new accessory marketing costs will go up by $10,000. Gabi Creations believes it will be able to sell all 1,200 pop sockets in the new year in addition to net sales revenue of $576,000. Assume cost of goods sold will be the same in 2022 as prior year, with exception of the increased costs associated with the pop sockets.

1. Prepare a multi-step income statement for 2022 to show the expected net income under the plan.