Inventories	$150,000
Cost of Goods Sold	$250,000
Administrative Expenses	$50,000
Accumulated Depreciation	$150,000
Sales	$700,000
Depreciation Expense	$25,000
Selling Expenses	$150,000
Common Stock Dividends	$18,000
Interest Expense	$18,000
Corporate Tax Rate	30%

Prepare an income statement using the information given below. Make sure to identify gross profit, operating income, and net income. Please define what each number represents and why it is important to a business.