LG 1 P3-3 Income statement preparation David Chan operates Speedy Delivery Service Company, a fleet of delivery trucks in a large metropolitan area, and has just completed his first full year in business. During the year, the company billed $420,000 for delivery services, David has a total of 11 employees (10 truck drivers and a clerical assistant). In addition to his own monthly salary of $5,000, David paid anmal salaries of $12,100 and $10,000 to each of the truck drivers and the clerical assistant, respectively. Employment taxes and benefit costs for David and his employees totaled $42,600 for the year. Sundry expenses, including office supplies, tocaled $12,400 for the year. In addition, David spent $22,000 during the year on tax-deductible travel and entertainment associated with client visits and new business development. Lease payments for the rented office space (a tax-deductible expense) were $2,800 per month. Depreciation expense on the office furniture and delivery trucks was $16,300 for the year. During the year, David paid an interest of $18,000 on the $150.000 borrowed to start the business. The company was subject to an average tax rate of 40% during 2014 a. Prepare an income statement for Speedy Delivery Service Company for the year ended December 31, 2014. b. Evaluate the financial performance of the company in 2014