Please find the operating expenses and income tac expense for this.

-40% You are a new staff accountant with a large regional CPA furm, participating in your first audit. You recall from your auditing class that CPAs often use ratios to test the reasonableness of accounting numbers provided by the client. Since ratios reflect the relationships among various account balances, if it is assumed that prior relationships still hold prior years ratios can be used to estimate what current balances should approximate However, you never actually performed this kind of analysis until now. The CPA in charge of the audit of Covington Pike Corporation brings you the list of ratios shown below and tells you these reflect the relationships maintained by Covington Pike in recent years. Profit margin on sales Return on assets 7.5% Gross profit margin Inventory turnover ratio 6 times Receivables turnover ratio - 25 times Acid-test ratio 0.9 to one Current ratio - 2 to 1 Return on equity - 10% Debt to equity ratio Tises interest earned ratio - 12 times Jotted in the margins are the following notes Net income $15,000 . Only one short term note ($5,000), all other current liabilities are trade accounts Property, plant and equipment are the only noncurrent assets. Bonds payable are the only noncurrent liabilities The effective interest rate on short-term notes and bonds is 8% No investment securities Cash balance totals $15.000 Required: You are requested to approximate the current year's balances in the form of a balance sheet and income statement to the extent the information allows Accompany those financial statements with the calculations you use to estimate each amount reported Balance Sheet Assets Cash Accounts receivable (net) Inventory $ 15,000 12,000 30,000 Prepaid expenses and other current assets Current assets Property, plant, and equipment (net) Total Assets Liabilities and Shareholders' Equity Accounts payable Short-term notes $ 3,000 60,000 140,000 $ 200,000 $ 25,000 5,000 Current liabilities Bonds payable Shareholders' equity Total Liabilities and Shareholders' Equity 30,000 20,000 150,000 200,000 $ Income Statement Net sales Cost of goods sold Gross profit Operating expenses Interest expense Income tax expense 300,000 180,000 120,000 2,000 Net income $ 118,000