Preparing the statement of cash transactions method with non-cash The 2016 income statement and comparative balance sheet of McKnight, Inc. followa MCKNIGHT, INC. Income Statement Year Ended December 31, 2016 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses $ 441,000 202,200 238,800 Salaries Expense Depreciation Expense-Plant Assets Other Operating Expenses Total Operating Expenses $ 76,400 14,200 10,500 101,100 137,700 Operating Income Other Revenues and (Expenses): 8,800 Interest Revenue Interest Expense Total Other Revenues and (Expenses) (21,600) Net Income Before Income Taxes Income Tax Expense Net Income (12,800) 124,900 19,500 $ 105,400