Q2: ElectroWizard Company produces a popular video game called Destructe, which sells for $32. Last year ElectroWizard sold 50,000 Destructo, games, each of which costs $6 to produce. ElectroWizard incurred selling and administrative expenses of $80,000 and amortization expense of $10,000. In addition, ElectroWizard has a $100,000 loan outstanding at 12%. Its tax rate is 40%. There are 100,000 common shares outstanding. Prepare an income statement for ElectroWizard in good form (include EPS). Your Answer For question 2: Sales Less: Cost of Goods Sold Gross Profit Less: Operating Expenses Selling and administrative Amortization Operating Profit (EBIT) Less: Interest expense @ 12% Earnings Before Taxes Less: Taxes @ 40% Net Income Common Shares Earnings Per Share ElectroWizard. Company Income Statement for the year ended 12/31/

Q2: ElectrolWizand Company produces a popular video game called Destructe which selk for \$32. Last year FlestcolWibacd sold 50,000 Destcucte garnes, each of which costs $6 to produce. Electrolwizand incurred selling and administrative expenses of $80,000 and amortization expense of $10,000. In addition, ElectroWWizard has a $100,000 loan outstanding at 12%. Its tax rate is 40%. There are 100,000 common shares outstanding. Prepare an income statement for ElectroWizard in good form (include EPS). Your Answer For question 2