Instructions Scherer Company provided the following Income statements for its first 3 years of operation: Scherer Company Income Statements Years of Operation 1 Year 1 Year 2 Year 3 2 Net sales $1,100,000.00 (296,000.00) $804,000.00 $1,245,000.00 (323,000.00) $1,430,000.00 (373,000.00) 3 Less: Cost of goods sold Gross margin Less: Operating expenses $920,000.00 $1,057,000.00 7 Income taxes (424,000.00) (110,600.00) $269,400.00 (474,000.00) (121,600.00) $324,400.00 (585,500.00) (138,400.00) $333,100.00 3 Net Income Instructions Scherer Company provided the following Income statements for its first 3 years of operation: Scherer Company Income Statements Years of Operation 1 Year 1 Year 2 Year 3 2 Net sales $1,100,000.00 (296,000.00) $804,000.00 $1,245,000.00 (323,000.00) $1,430,000.00 (373,000.00) 3 Less: Cost of goods sold Gross margin Less: Operating expenses $920,000.00 $1,057,000.00 7 Income taxes (424,000.00) (110,600.00) $269,400.00 (474,000.00) (121,600.00) $324,400.00 (585,500.00) (138,400.00) $333,100.00 3 Net Income