On Oct 1, 2020, Ned started a new business customizing TV sets. He visited customers homes and installed colourful lighting that enhanced TV viewing. Soon, his friend Robert had the idea of prebuilding TV sets which customers could pick up.

Since he was busy with installations, Ned decided he would pay Robert to build the TVs and sell them out of his garage. Robert earned $100 per TV he customized and sold. He earned $75 for each prebuilt TV which Ned delivered and installed in a customers home.

Ned buys TVs in bulk at an average price of $300 per unit. He pays $250 for a big box of LED lights, which are enough to complete 10 TVs. Ned estimates that his work vehicle costs total $300 a month.

In 2020, Ned completed 32 in-home installations, for which he charged $250 each. He also installed 11 prebuilt TVs, which he charged $700 each for. Robert sold 29 prebuilt TVs for $500 apiece.

Ned is thinking of making a couple of changes for 2021, when he is expecting the sales numbers from 2020 to triple. He is wondering if he should pay Robert a $25 hourly rate for 20 hours a week, plus a $20 commission for each TV sold (instead of the current compensation structure).

Ned is also considering paying $1,000 a month for advertising. This would boost 2021 sales projections by 15% (Robert would be working 25 hours a week).

Type out Ned's 2020 Income Statement. Correctly format your work, putting dollar signs at the appropriate places and indicate which numbers should be double-underlined using a "DU" label.

Also, analyze and comment on things Ned has done well, things he could improve on, and things he should keep an eye on in 2021.