Income statement preparation Cathy Chen, a self-employed certified public accountant (CPA), just completed her first full year in business. During the year, she charged her clients $361,000 for her accounting services. She had two employees, a bookkeeper and a clerical assistant. In addition to her monthly salary of $8,000, Ms. Chen paid annual salaries of S48,100 and $35,700 to the bookkeeper and the clerical assistant, respectively. Employment taxes and benefit costs for Ms. Chen and her employees totaled $34,000 for the year. Expenses for office supplies, including postage, totaled $10,300 for the year. In addition, Ms. Chen spent $17.400 during the year on tax-deductible travel and entertainment associated with client visits and new business development. Lease payments for the office space rented (a tax-deductible expense) were $2,720 per month. Depreciation expense on the office furniture and fixtures was $15,400 for the year. During the year, Ms. Chen paid interest of $15,100 on the $117,000 borrowed to start the business. Her average tax rate for the year was 30% a. Prepare an income statement for Cathy's business for the year. b. Evaluate her financial performance for the year. Complete the fragment of the income statement for Cathy Chen below. (Select the correct account from the drop-down menu and round to the nearest dollar.) Cathy Chen, CPA Income Statement for the Year Ended December 31, 2021 $ Complete the fragment of the income statement for Cathy Chen below. (Select the correct account from the drop-down menu and round to the nearest dollar.) Less: Operating expenses S Total operating expense Operating profits (EBIT) Complete the fragment of the income statement for Cathy Chen below. (Select the correct account from the drop-down menu and round to the nearest dollar.) Net profits before taxes $ Complete the fragment of the income statement for Cathy Chen below. (Select the correct account from the drop-down menu and round to the nearest dollar.) Net profits after taxes S b. Evaluate her financial performance for the year. (Select the best answer below.) O A. In her first year of business, Cathy Chen covered all her operating expenses and earned a net profit of $56,360 on revenues of $361,000. OB. In her first year of business, Cathy Chen did not cover all her operating expenses, which resulted in a net loss of $56,360 on revenues of $361,000. OC. In her first year of business, Cathy Chen did not cover all her operating expenses, which resulted in a net loss of $39,452 on revenues of $361,000. OD. In her first year of business, Cathy Chen covered all her operating expenses and earned a net profit of $39,452 on revenues of $361,000. Choose from any list or enter any number in the input fields and then continue to the next