is the owner of Poppa Rollo's Pizza, which has prospered during its

fand year of operation. In order to help her decide whether to open another

jperith $,$ Lorange has prepared the current income statement of the business.

Lowng read in an industry trade journal that a successful two$-$year$-$old pizzeria

ners the following criteria:

Gross profit percentage is at least $60\%.$

Net income is at least $$90,000.$

loning believes the business meets both criteria. She intends to go ahead with herespansion plan and asks your advice on preparing the income statement in ucordance with Generally Accepted Accounting Principles. When you point out that the statement includes errors, Lorange assures you that all amounts are correct.

Bursome items are listed in the wrong place.