Prepare an income statement for 20X2.

For December 31,20X1, the Balance sheet of Jerry Corporation was as follows: Sales for 20X2 were 14,000,000, and the COGS was 55% of sales. Administrative and selling expenses were 110,000. Depreciation expense was 10\% of PPE (Gross) at the beginning of the year. Interest rates are 8% and 3% for the notes payable and bonds payable, respectively. The tax rate is 20%. $120,000 in preferred stock dividends were paid, and $275,000 in dividends were paid to common stockholders. There were 25,000 shares of common stock outstanding. During 20X2, the prepaid expenses balance is unchanged. Accounts receivable and inventory increased by 15%. A new machine was purchased on December 31,30X2 at a cost of $1,500,000 6 Faculty of Business and Management Accounts payable increased by 25 percent. Notes payable increased by $650,000 and bonds payable decreased by $750,000, both at the end of the year. The preferred stock, common stock, and paid-in capital in excess of par accounts did not change. a- Prepare an income statement for 20X2