Income statement 2014 $1,500,000 750,000 Sales COGS Gross profits Operating Expenses Selling expenses General admin. expenses Lease expenses Depreciation expense total operating expenses Operating profits Interest Net profits before taxes 100,000 50,000 10,000 40,000 20,000 Taxes Net profits after taxes Preferred dividends Earnings available for common stockholders 10,000 Tax table Range of taxable income 100,000-335,000 335,000-10,000,000 Tax calculation 22,250 +(39% x amount over 100,000) 113,900 + ( 34% x amount over 335,000)