Kaylee James, a connoisseur offine chocolate, opened Kaylee's Sweets in Collegetown on January 1, 2018. The shop specializes in a selection of gourmet chocolate candies and a line of gourmet ice cream. You have been hired as manager and your duties include maintaining the store's financial records. Below is the trial balance for Kaylee's Sweets as of June 30, 2018. Kaylee's Sweets Trial Balance June 30, 2018 Credit Debit 14,670 2,320 3,800 4,290 9,100 3,600 Cash Accounts Receivable Inventory Prepaid Expenses Equipment Furniture and Fixtures Accounts Payable Notes Payable Common Stock (1,000 shares issued and outstanding) Sales Revenue Cost of Goods Sold Wage Expense Advertising Expense Insurance Expense Interest Expense Income Tax Expense Total 5,355 11,000 20,000 6,700 2,200 1,300 800 420 200 355 43,055 43,055 Required: 1. From the trial balance, prepare a classified income statement for the six months ended June 30, 2018. 2. Calculate EPS. 3. After six months in business, Kaylee asks you to measure how effectively sales and expenses of the business are being managed. Compute the net profit margin for Kaylee's Sweets and compare to industry average. Discuss the results. The following data is available: Industry Total assets 58,500 Total liabilities 22,000 Total equity 36,500 Sales revenue 92,500 Net income 22,750