Income Statement Cline Custom Bikes Income Statement ($000) For year ended December 31, 2012 Sales Revenue $2,200 Less Cost of Goods Sold $1,420 Gross Profit $780 Less Operating Expense Selling Expense $300 G&A $270 Depreciation $30 Total operating expenses $600 Operating Profits $180 Less Interest Expense $29 Net Profit Before Tax $151 Less Tax (30%) $45 Net Profit After Tax $106 Statement of Retained Earnings Retained Earnings balance (Jan 1, 2012) $80 Plus: Net Profit After Tax (for 2012) $106 Less Cash dividends on common ($76) Retained Earnings Balance (Dec 31, 2012) $110